The UK will not retaliate immediately to the renewal of steel and aluminium tariffs by the US, the BBC understands.
Many in the industry are calling on Britain to join the EU and Canada who have said they will hit back against the policy announced by US President Donald Trump on Monday.
The tariffs, set to apply from 12 March, would mean any steel or aluminium coming into the US would be subject to an import tax worth 25% of its value.
“Cool heads” were necessary to avoid escalating trade tensions with the Trump administration, UK government sources said, adding that retaliatory tariffs may not be in the best interest of the industry.
UK ministers will meet the steel industry and unions later on Tuesday and visit key steel companies later this week.
The UK’s direction of travel on tariffs in general appears to be a clear attempt to differentiate it from other G7 allies’ attempts to project strength to the White House.
Tariffs apply to companies buying from overseas, not to the overseas companies selling to them.
The importing company may choose to pass the cost on to customers directly or to absorb the cost themselves, or simply to reduce imports. Foreign exporters could also decide to cut their prices to protect sales.
Trade body UK Steel said on Monday that any US tariffs would be a “devastating blow” to the UK industry.
“President Trump has taken a sledgehammer to free trade with huge ramifications for the steel sector in the UK and across the world,” the group added.
Unite, the union representing UK steel workers, said Trump’s announcement “should be a wake-up call for this government”, calling on it to buy more UK steel in response.
This article was originally published at www.bbc.com
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