'Devastating blow' Donald Trump's new 'sledgehammer' tariff will have on UK as it comes into effect
Donald Trump seems to be slapping tariffs on countries left, right and centre at the minute - and the UK isn't immune to the effects of the US' trade war.
The President, 78, has been holding the threat of hiking up taxes on imports from other countries over the heads of nations such as China, Canada and Mexico over the last few weeks.
He even threatened to double Canada's tariffs after Ontario's premier warned that the nation would retaliate by adding a 25 percent surcharge on energy exported to three US states.
But he wasn't bluffing about the 25 percent tariffs being imposed on all steel and aluminium imports to the US - and these come into effect from today (12 March).
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It's all part of the commander-in-chief's 'America first' agenda, which he claims will protect US manufacturing and increase jobs.
The downside is, this will make objects made out of steel and aluminium - from cars to fizzy pop cans - a lot more expensive.
The US relies on Canada's imports the most, buying around six million tonnes of the neighbouring country's steel last year and receiving about 90 percent of it's aluminium exports.
As mentioned, officials in the Great White North aren't taking the tariffs lying down - whereas the UK isn't planning on giving as good as we get, according to reports.
Downing Street will not be imposing trade tariffs in response to Trump's move, a government official has said, as it is hoped we might be able to dodge the hike in prices.
The British government will continue to work with the US in the hopes of thrashing out an exemption, Reuters reports.
On the other hand, the European Union intends to go tit for tat with Trump and has said it will impose retaliatory duties on 26 billion euros of US goods in response.
The official spokesman for Prime Minister Keir Starmer said the UK and US shared a strong economic relationship 'based on fair and balanced, reciprocal trade' earlier this week.
So lets hope the leaders on both sides of the pond both want to nurture this.
The idea of the UK being exempt from the tariffs was discussed during Starmer's visit to the White House last month, so hopefully the PM has already laid the groundwork.
Brits ought to keep their fingers crossed that Starmer and Trump come to some kind of arrangement on this soon, as trade minister Jonathan Reynolds warned it wouldn't be pretty otherwise.
In a recent phone call with US Commerce Secretary Howard Lutnick, the politician pleaded the UK's case.
Although we're not in Canada's league, we still have a significant stake in steel and aluminium exports and imports.
According to data from the British government, the States is the receptor of about 5 percent of the UK's steel exports and 6 percent of aluminium exports.
This is worth more than £400million ($518 million) each year, according to industry body UK Steel - which has warned that US tariffs would be a 'devastating blow to the industry'.
Perhaps the UK should take a leaf out of Canada's book, as threatening a 25 percent surcharge on energy in three US states seems to have paid off for Ontario's premier Doug Ford.
A short time later, a joint US-Canada statement was released which read: "Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada.
"Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota."
Topics: Donald Trump, US News, UK News
Olivia Burke