Business Secretary pressed to secure US trade deal following Trump steel tariffs

Business Secretary Jonathan Reynolds has been pressed to secure a trade deal with the US after Donald Trump hit steel and aluminium imports with 25% tariffs.

Shadow business secretary Andrew Griffith said it is a “colossal failure” of the Government that the UK is not exempt from the US president’s global tariffs on the metal imports.

In the Commons, the Government was urged to set out a “gameplan” and to target Elon Musk’s Tesla as part of retaliatory measures.

The European Union has announced trade counter-measures, hitting American goods with retaliatory tariffs, but Prime Minister Sir Keir Starmer has resisted calls for the UK to immediately hit back.

Mr Reynolds said he intends to “look forward in a positive way to improving that trade relationship”, but the Government reserves the right to respond.

Chairman of the business and trade committee Liam Byrne branded the new tariffs “double-trouble” for the UK’s steel and aluminium industry.

The Labour MP for Birmingham Hodge Hill and Solihull North said: “President Trump’s new tariffs are double-trouble for Britain’s steel and aluminium supplies, they’ll dent £350 million worth of sales, but they also risk swamping the UK with over-subsidised Chinese steel diverted from America.

“What is the Secretary of State’s gameplan now to redouble defences for our UK metal makers?”

Mr Reynolds replied: “He is right to say the challenge here is not just the direct trade we have with the US, but the impact of trade diversion.

“He knows we already have 16 anti-dumping, anti-subsidy measures in place against 14 separate product categories, once the annual tariff three-quarter is hit a 25% tariff applies to those.

“I can tell him and the House today though that I will support UK Steel’s application to the Trade Remedies Authority for review of the steel safeguards, we do have to think about what comes after that, and a new one for the aluminium sector too.”

Speaking from the Conservative front bench, Mr Griffith said: “How have we got to this point?

“After 35 weeks as Trade Secretary, 18 weeks since the US election, an entire month since steel and aluminium tariffs were announced, the Secretary of State is only now going to sit down with the secretary of commerce of our closest ally.

“Whilst he’s been correcting his CV, steelworkers and businesses are hurting today. This is a colossal failure of trade policy on his watch. Why has this taken so long, and when can we expect an agreement?”

Mr Reynolds replied: “(Mr Griffith) may have not seen some news recently, but the UK has had the best engagement of any country with the new US administration, led by our Prime Minister.

“And isn’t it good to see again, a British Prime Minister respected on the world stage, delivering for Britain?

“We’ve had tremendous engagement with the US administration, I’m looking forward to meeting them in-person next week.”

Mr Griffith then said: “No answers come there forth.

“Over a million jobs in this country depend on trade with the United States, thousands of jobs in our steel industry. He doesn’t know when he’s going to get a deal.

“Will he publish his red lines for that deal, his objectives, and what he hopes to achieve from meetings next week?”

Mr Reynolds replied: “On iron, steel and aluminium tariffs, the US position is no exemptions for anybody, that is across the board. They recognise, I think, the very strong case that we have, but that is their position.

“No I will not publish my negotiating red lines before a negotiation. That is quite frankly the worst advice I have ever heard in the House of Commons.”

Elsewhere in business and trade questions, Liberal Democrat trade spokesperson Clive Jones urged the Government to “strike at the political allies of the president”.

He added: “Can the Secretary of State confirm if Elon Musk’s Tesla are being considered as a potential target for retaliatory measures?”

Mr Reynolds replied: “We reserve the right to take any action in response to any changes in our trading relationships.

“But I do think we can look to the opportunity the UK has, which is greater than any other country, to get to an agreement that improves our terms for trade with the US.

“I reserve all rights to take any action, but I think we can look forward in a positive way to improving that trade relationship.”