UK signals it will seek US steel tariff exemption

The UK government has recently indicated that it will seek exemptions from the tariffs imposed by the United States on steel imports. President Donald Trump has announced a 25% tax on steel entering the US, which means that American companies will have to pay more to import steel from other countries. Business Secretary Jonathan Reynolds stated in an interview with the BBC that the UK has a strong case for avoiding these tariffs, as the amount of steel exported from Britain to the US is relatively small compared to other countries. He also pointed out that the steel exported from the UK is used in critical sectors such as defense. Trump has previously declared that these tariffs will take effect on March 12, with no exceptions or exemptions allowed. The UK government is actively working to avoid these tariffs, even as many in the steel industry are urging the country to align with the European Union and Canada, both of which have expressed their intent to retaliate against the US's tariff policy. Although the UK is not a major supplier of steel to the US, accounting for about 10% of British steel exports, some suppliers of specialized steel products find trade with the US to be crucial. There are also concerns within the steel industry that these tariffs could not only restrict exports to the US but also lead to a situation where excess steel is 'dumped' in the UK market. This could happen if other countries, unable to sell their steel to the US, decide to sell it at lower prices in the UK, potentially undermining UK steel manufacturers. Reynolds acknowledged the global oversupply of steel and aluminum but emphasized that he would argue to the Trump administration that the UK is not the source of the problem. His comments also suggested that the UK would be hesitant to join any retaliatory measures that the EU might take in response to further US tariffs, stating that 'the UK national interest was best served by free trade. ' Tariffs are costs that companies importing goods from abroad must pay, and these costs are not borne by the foreign companies selling the products. There are concerns that these tariffs could lead to increased inflation if companies choose to pass on the costs to their customers. In some cases, companies might decide to absorb the costs themselves or reduce their imports, which would negatively impact foreign exporters and, in the case of the UK, British steelmakers exporting to the US. Earlier this week, a spokesperson for Prime Minister Sir Keir Starmer refrained from commenting on the situation. The looming threat of trade tariffs has created uncertainty for UK businesses, which are set to face higher taxes starting in April. Reynolds admitted that the tax increases announced in the Budget have been 'challenging' for businesses, and the government is asking a lot from them. During a meeting with business leaders near Kings Cross, Reynolds announced new guidance for the competition watchdog to be more agile, responsive, and less risk-averse. This meeting followed the recent departure of the chair of the Competition and Markets Authority, who was removed by ministers due to concerns that the organization was not sufficiently focused on promoting economic growth. The business secretary hinted that the government might take further steps to reduce the regulatory burden on businesses, stating, 'I think we have to genuinely ask ourselves, have we got the right number of regulators?