UK Favours Pragmatism Over Tit-For-Tat Tariffs

• Britain did not immediately retaliate to U.S. President Donald Trump's tariffs on steel and aluminium imports on Wednesday, though Prime Minister Keir Starmer said he was disappointed by the move and that all options remained on the table. Trump imposed global tariffs of 25% on all imports of steel and aluminium, which he said would reorder global trade in favour of the United States.
• Britain had hoped to avoid tariffs on its steel sector, which is small but produces specialist products for defence and other industries. Trump said last month the two countries might reach a bilateral trade deal that would avert duties.
• The British government had argued its provision of key goods for the U.S. defence, oil and gas and construction sectors meant it should be given a carve-out. The EU responded to the U.S. tariffs by saying it would impose counter-tariffs on 26 billion euros ($28Bn) worth of U.S. goods from next month.
• A British official said on Tuesday the government would not impose retaliatory trade tariffs on the United States and focus instead on trying to secure an exemption. The head of the British steel trade body, UK Steel, questioned whether Trump realised Britain was an "ally, not a foe". "Our steel sector is not a threat to the U.S., but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade," Director General Gareth Stace said.

(Source: Reuters)