UK Prime Minister Sir Keir Starmer has criticized the latest US tariffs on steel and aluminium imports, calling them "disappointing" as the 25% levy officially comes into force. The move, introduced by US President Donald Trump, has sparked concern among British steelmakers, who fear an influx of cheap steel into the UK market as a result.

The European Union has responded by announcing counter tariffs worth €26 billion (£22 billion) on US goods. The EU's measures will be phased in starting April 1 and fully implemented by April 13. European Commission President Ursula von der Leyen warned that such trade barriers create uncertainty and threaten jobs on both sides of the Atlantic.

British steel and aluminium exports to the US, valued at £474 million and £225 million respectively in 2024, play a modest but significant role in the UK economy. However, the broader impact is expected on products containing steel and aluminium, which accounted for £2.2 billion—around 5% of total UK exports to the US last year.

Industry representatives in the UK have expressed serious concerns over the repercussions of these tariffs. Gareth Stace, director general of UK Steel, described the US decision as "hugely disappointing," warning that the additional costs would burden American buyers while also leading to an oversupply of cheap international steel in the UK market. Unite general secretary Sharon Graham urged the UK government to prioritize domestic steel in public sector projects, while the Community union called for taxes on carbon-intensive steel imports.

In response, Starmer stated that the UK is taking a "pragmatic approach" and keeping "all options on the table" while negotiating a trade deal with the US. Last month, the UK government sought an exemption from the tariffs, with the issue reportedly discussed in a recent call between Starmer and Trump.

Despite opposition from international leaders, the US steel industry has largely welcomed the tariffs. The American Iron and Steel Institute argued that the move would create jobs and strengthen domestic production. Trump's administration has also clarified that, unlike in 2018, there will be no country-specific exemptions this time.

However, within the US, the tariffs have drawn criticism from industries reliant on steel and aluminium. Manufacturing firms, automotive giants, and economic analysts warn that increased costs could negatively impact consumers and economic growth. The American Automotive Policy Council, representing Ford, General Motors, and Stellantis, voiced concerns over rising expenses due to the removal of exemptions for Canada and Mexico.

Economic analysts at Oxford Economics have already lowered their US growth forecast from 2.4% to 2%, citing the potential economic strain from these tariffs. Meanwhile, financial markets in the US have responded negatively, with stocks declining on recession fears.

As global reactions unfold, the UK government continues to assess its response, balancing trade negotiations with the need to protect its domestic steel and aluminium industries.