BRITAIN will keep “all options on the table” in response to Donald Trump imposing tariffs on steel and aluminium, Sir Keir Starmer says.
The Prime Minister revealed he was “disappointed” our close ally had imposed the 25 per cent levy on the goods.
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But so far the UK has refused to hit back with Ministers saying a trade agreement between the two countries is under discussion.
The PM said: “On the question of tariffs, like everybody else I’m disappointed to see global tariffs in relation to steel and aluminium. But we will take a pragmatic approach.
“We are…negotiating an economic deal which covers and will include tariffs if we succeed but we will keep all options on the table.”
The PM also revealed that he had been in close contact with Canada over their tariff treatment by America – with Donald Trump wanting them to become the “51st state”.
Business Secretary Jonathan Reynolds also said the UK is currently resisting move after Donald Trump slaps 25 per cent levy on steel as global trade war steps up a gear.
Speaking after the US announced the levies he said that “all options are on the table” and the Cabinet Minister won’t hesitate to act in the national interest.
Mr Reynolds said that he would be talking to the companies affected and will be working “closely and productively” with the US.
Around 5% of UK steel exports and 6% of aluminium exports by volume go to the US.
Treasury Minister James Murray said the UK must remain “cool-headed” and refused to follow the EU in imposing counter-tariffs worth some £22 billion.
He said: “We reserve our right to retaliate, but we want a pragmatic approach, working closely and productively with the US.
“We’re already negotiating rapidly toward an economic agreement. We want to continue with that really important work which came out of the prime minister’s successful visit to Washington last month.
“And we think that’s in the best interest of British businesses and the British public.”
Ursula von der Leyen, President of the European Commission, said: “The European Union must act to protect consumers and business. The countermeasures we take today are strong but proportionate.”
President Trump initially only targeted Mexico, Canada and China with his trade war before opening them up to the world.
His plan is designed to protect US manufacturing and bolster job opportunities by making internationally made products more expensive and less attractive to buy.
It will also threaten to make the cost of many things such as cars more expensive.
On Tuesday, Trump again threatened Canada with historic financial punishment as they threatened to impose their own 25 per cent tariffs on electricity in three US states.
The brewing trade war between the two neighbouring countries deepened this week after Trump doubled the 25 per cent levy on Canadian steel and aluminium.
It came in response to the Ontario government’s threat of an electricity surcharge.
