The UK is seeking US trade contracts as Donald Trump’s metal tariffs are in effect

The UK is seeking a trade agreement with the US as tariffs imposed by President Donald Trump on steel and aluminum imports are in effect.

The introduction of import taxes sparked an immediate response from the European Union on Wednesday.

The UK did not announce tariffs accordingly as it works towards a “broader economic agreement,” but conservatives said there was “no plan” for the work.

Trump hopes tariffs will boost US steel and aluminum production, but critics say it will raise prices for US consumers and dents’ economic growth, with the US market sank on Monday and Tuesday in response to fears of a recession.

Tariffs mean that US businesses want to bring steel and aluminum to the country.

These costs will likely be passed on to US consumers.

The EU announced retaliatory tariffs on Wednesday in response to goods worth 26 billion euros (£22 billion).

They will be partially introduced on April 1st and fully implemented on April 13th.

European Union President Ursula von der Leyen added that tariffs are “bad for business and bad for consumers,” and said he “deeply regrets this measure.”

“They are disrupting the supply chain. They bring uncertainty to the economy. Employment is at risk and prices are rising.

She said the EU’s response was “strong but proportionate” and the EU remains “open to negotiations.”

Customs duties are imposed on “products ranging from boats to bourbons to motorcycles.”

In the UK, Jonathan Reynolds’ executive director said tariffs were “unfortunate”, but the UK was “focusing on a practical approach” and “quickly negotiating” US trade agreements.

He said the UK is “working with the affected companies” and will respond to national interests “by putting all options on the table.”

But conservative shadow business secretary Andrew Griffiths said Labour “can’t even enter the room.”

Lobby Group, the American Iron and Steel Institute (AISI), said tariffs will create jobs and boost US steel production.

President Kevin Dempsey said the move closed a system of exemptions, exclusions and allocations that would allow foreign producers to avoid tariffs.

The US is the leading importer of aluminum and steel, and Canada, Mexico and Brazil are one of the largest suppliers.

On Tuesday, Trump made a U-turn by doubling Canada’s tariffs, depending on the additional fees Ontario had kept in electricity.

Other countries also responded to tariffs immediately.

Australia’s prime minister Anthony Albanese said he was collecting.

Albanese, who was trying to secure a tariff exemption, said Australia would not impose a retaliatory obligation, as it would only raise prices for Australian consumers.

Meanwhile, Canadian Energy Minister Jonathan Wilkinson told CNN that his country will retaliate, but added that Canada is not trying to escalate tensions.

Canada is one of the closest trading partners in the United States and the largest exporter of steel and aluminum to the United States.

In 2018, President Trump imposed 25% import duties on steel and 10% on aluminum during his first term as president, but the carve-out was ultimately negotiated against many countries.

This time, the Trump administration said there is no exemption.

Gareth Stace, director of Industry Body UK Steel, said the US move was “very disappointing.”

Some steel companies’ contracts have already been cancelled or pending, he said, adding that US customers will have to pay an additional £100 million per year in taxes.

He said tariffs “stricken us hard” as steel imports into the UK are rising and the industry is “struggling” with energy prices.

He said he shared Trump’s concerns about cheap steel flooding the market, but urged him to work with the UK rather than oppose it.

Unite General Secretary Sharon Graham, urged the government to “act decisively to protect the steel industry, adding that the public sector should “always buy British-produced steel.”

Michael Dimarino runs Linda Tool, a Brooklyn company that manufactures parts for the aerospace industry. Everything he makes has something to do with a kind of steel, many of which come from American factories.

“If I have a higher price, I pass them on to the customers. They have a higher price, they tell the consumers,” DiMarino said, adding that he supports calls for an increase in production in the US, but warns that the president’s move could backfire.

The American Auto Policy Council, a group representing automotive giants such as Ford, General Motors and Stellantis, also reflects such concerns.

“We are concerned that rescinding the Canada and Mexico waiver specifically adds a significant amount of money to automaker suppliers,” said Matt Blunt, president of the organization.

Bill Raynsch, a former Commerce Department employee, said tariffs could help the US steel and aluminum industries, but could damage the wider economy by making products more expensive.

Fear of the economic costs of Trump’s trade tariffs has sparked sales in the US and global stock markets accelerated this week after the US president refused to rule out the outlook for an economic recession.

Meanwhile, research firm Oxford Economics said in a report that it has reduced its annual US growth forecast from 2.4% to 2%, making even more sharp adjustments to the outlook for Canada and Mexico.

“Despite the downgrade, we expect the US economy to surpass other major developed economies in the coming years,” the report added.

Additional Reports by Michelle Fleury of New York