UK to hold off on immediate retaliation as US steel, aluminum tariffs loom

By Aysu Bicer

LONDON (AA) - UK Prime Minister Keir Starmer confirmed Wednesday that his government will not immediately implement counter-tariffs if President Donald Trump moves ahead with a 25% levy on steel and aluminum imports to the US.

Starmer's comments came after a call Monday with Trump, who is expected to impose the tariffs on March 12.

The UK is engaged in discussions with the US, making the case for the country to be exempt from the proposed tariffs.

A Downing Street spokesperson emphasized the strength of the economic relationship between the UK and the US as one built on "fair and balanced, reciprocal trade," according to British media.

The new tariffs, however, could have serious consequences for global markets, with concerns growing about the potential negative effect on the UK’s steel sector.

The EU has made it clear that it is ready to take retaliatory action if the US presses forward with the levies.

The growing tension comes after Trump announced he would be increasing the size of the steel and aluminum tariff for Canadian imports from 25% to 50%.

That is in retaliation for Ontario province's decision to impose a 25% surcharge on electricity exports to the US, further escalating the already volatile trade relations between the two nations.

Downing Street has indicated that it will continue to engage in dialogue with the US while preparing for all possible outcomes.

It added it will continue to "take a cool-headed approach to any speculation around tariffs."

The looming tariffs have sparked concerns among businesses and political leaders, with many calling for a careful and measured response to avoid further disruptions to global trade.