May’s dismay at Trump trade war

PM ‘deeply disappointed’ by ‘unjustifiable’ steel tariffs – amid fears US could target our cars next

THERESA May attacked Donald Trump’s ‘unjustified’ trade tariffs last night amid fears that Britain’s car industry could be hit next.

The Prime Minister said she was ‘deeply disappointed’ with the US President’s decision to impose higher import taxes on steel and aluminium from Britain and the EU.

The EU signalled yesterday that it was prepared to hit back, making a complaint to the World Trade Organisation and finalising a list of American products it will target with tariffs of its own.

There are fears however, that this could spark a spiralling trade war, with Mr Trump responding to any retaliation by imposing additional import levies on cars from the UK and the EU.

That possibility will concern the 169,000 employees in the UK automotive industry, on top of existing fears for Britain’s 31,000 steel workers.

International Trade Secretary Liam Fox suggested last night that the UK may not fully support the EU’s retaliatory measures, instead saying Britain only backs the complaint to the WTO.

He said it would ‘take some time’ for EU member states to agree their response, and urged the bloc to pursue compromise with the White House in the interim – even though British diplomats have previously offered their support to measures drawn up in Brussels.

Dr Fox said it would be ‘very, very unfortunate if we get into this tit-for-tat position, especially with one of our closest allies’.

He added: ‘Nobody wins in a trade war, there are only casualties. We very much regret that these tariffs were put in place.

‘We think it’s of dubious legality and we will be with the EU 100 per cent in taking this to a dispute at the WTO.’

The deepening row comes just days before a G7 meeting of world leaders in Quebec next week, where European leaders will air their grievances to Mr Trump. Yesterday, French president Emmanuel Macron told Mr Trump his new tariffs on EU goods was a ‘mistake’ and ‘illegal’.

Mrs May’s language was more measured, but she said: ‘I am deeply disappointed at the unjustified decision by the US to apply tariffs to EU steel and aluminium imports.

‘The US, EU and UK are close allies and have always promoted values of open and fair trade across the world. Our steel and aluminium industries are hugely important to the UK, but they also contribute to US industry, including defence projects which bolster US national security.

‘The EU and UK should be permanently exempted from tariffs and we will continue to work together to protect and safeguard our workers and industries.’

Officials said Mrs May could also express her concerns in a phone call. However, given she wants to tie up a comprehensive post Brexit trade deal with the White House, Britain does not want to inflame the situation. Yesterday the EU, which handles trade matters on behalf of the UK, was finalising its response to the US, with measures affecting thousands of US imports to the EU worth £2.5billion, including Levi’s jeans and Jacks Daniel’s bourbon, hit with tariffs of up to 25 per cent.

Cecilia Malmstrom, the EU’s trade chief, admitted the bloc was ‘anxious’ that Mr Trump would follow through on earlier threats to put tariffs on European cars.

She said: ‘This would create enormous damage, not only to the European economy but also to the US.’ The US levies of 25 per cent on steel and 10 per cent on aluminium imports follow promises made by Mr Trump under his America First programme.

Earlier this year, he said: ‘If the EU wants to increase their already massive tariffs and barriers on US companies doing business there, we will apply a tax on their cars, which freely pour into the US.’

EU cars sold in the US face a levy of 2.5 per cent, compared to a 10 per cent tax on US vehicles brought into Europe.

BBC Radio 4 presenter Nick Robinson raised the hackles of his Today programme listeners yesterday morning when he adopted the American pronunciation of the word ‘aluminium’.

During an interview with a US expert on trade tariffs, Mr Robinson, 54, imitated his guest’s use of the word, saying ‘aloominum’.

Annoyed listeners quickly took to social media, with Bob Hawkins tweeting: ‘You’re British Nick Robinson. It’s ALUMINIUM’.

Andy Beck wrote: ‘It’s ALUMINIUM #NickRobinson not aloooooominum.’

The veteran journalist admitted on air that he had ‘caused shock and distress’.

He later tweeted: ‘An apology... I will be more steely in future.’

‘Enormous damage’