The Courier & Advertiser (Fife Edition)
UK steel industry fear over Trump tariffs
Economy: Concerns move could result in trade war, and call for Government to seek exemptions
The UK steel industry could be badly hit after US President Donald Trump confirmed plans for a 25% tariff on imports.
The measure, which Mr Trump said was aimed at protecting national security and American jobs, could trigger a full-blown trade war if the European Union responds with countermeasures.
Trade body UK Steel said the tariffs could have a “profound and detrimental impact”, while the Community union demanded action to protect British jobs and avoid a “global trade war”.
Labour MP Stephen Kinnock, whose constituency in south Wales includes the giant Port Talbot steelworks, said Prime Minister Theresa May had “let down” British workers by failing to stand up to the US President.
Speaking in the White House with a group of workers, Mr Trump confirmed the tax on steel imports and a 10% tariff on aluminium in response to an “assault on our country” from cheap overseas metal.
“Today I’m defending America’s national security by placing tariffs on foreign imports of steel and aluminium,” he said.
There would be exemptions for North America Free Trade Agreement (Nafta) states Mexico and Canada and Mr Trump said other countries may be able to negotiate to avoid the tariffs.
Mr Trump said if his goals could be accomplished “by other means” the US will remain “open to modifying or removing the tariffs for individual nations as long as we can agree on a way to ensure that their products no longer threaten our security”.
UK Steel’s director Gareth Stace said: “Today’s announcement confirms our fears that the default position is for tariffs to apply across the board outside of Nafta.
“Such tariffs would have a profound and detrimental impact on the UK steel sector, which exported some 350,000 tonnes of products to the US in 2017, over 7% of its total exports,” Mr Stace added.
“The UK sector is in the midst of a fragile recovery following years of considerable turmoil, it would be utterly devastating if this were to be undermined.
“Imposing such measures on US allies in the name of national security is difficult to comprehend.”
He said it was “vital” the EU and UK worked with the US administration on exemptions to the tariff.
But the industry fears the indirect consequences of Mr Trump’s actions, which could lead to cheap Chinese steel being dumped on European markets instead of being sold to the USA.
EU Trade Commissioner Cecilia Malmstrom said the bloc should be excluded from the measures, and she would meet US trade representative Robert Lighthizer to discuss the situation tomorrow.
The UK sector is in the midst of a fragile recovery . . . it would be utterly devastating if this were to be undermined. UK STEEL DIRECTOR GARETH STACE