President Donald Trump’s tariffs on UK steel “couldn’t come at a worse time,” the industry has warned as the levy on U.S. imports is introduced.

The British steel and aluminium industries are braced for the impact of the U.S. president’s tariffs, which came in at midnight in the U.S., around 0400 GMT.

The UK government is unlikely to immediately retaliate to the 25 per cent import tax, with officials stressing the need for a “cool-headed approach” after last-ditch efforts to persuade Mr Trump to spare British industry from his global tariffs appeared to have failed.

The European Union announced it would implement counter-tariffs on $28 billion worth of goods starting on April 1.

Gareth Stace, the director-general of the trade association UK Steel, branded the Trump administration’s move “hugely disappointing.”

He added, “President Trump must surely recognise that the UK is 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.

“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home against an oversupplied and increasingly protectionist global landscape. What’s more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of U.S. tariffs.”

Mr Stace added, “It is essential that the UK government not only continues efforts to negotiate exemptions with the U.S. but also takes decisive action to bolster our trade defences.

“We greatly appreciate all the efforts that have been made so far and will continue working closely with our Government to secure the best possible outcome.”

The aluminium industry body had earlier warned the looming import taxes were already having an effect.

Nadine Bloxsome, chief executive of the Aluminium Federation, said, “The UK aluminium sector is already seeing the first impacts of these tariffs. The sharp rise in U.S. premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage.”

William Bain, head of trade policy for the British Chambers of Commerce, said the decision plunged both countries “into a new age of uncertainty.”

The issue was discussed in a call between UK Prime Minister Keir Starmer and Mr Trump on Monday, and ministers and officials have been in frequent talks with their U.S. counterparts since the measures were first proposed in February.

The UK prime minister’s official spokesman said the government was “engaging closely with the U.S., and we remain prepared to defend the UK’s national interest where it’s right to do so.”

He added, “The government’s committed £2.5 billion ($3.2 billion) of investment to rebuild the UK steel industry and support communities now and for generations to come.”

The government estimated that around five per cent of UK steel exports and six per cent of aluminium exports by volume go to the U.S. However, the aluminium industry body said the U.S. market accounted for 10 per cent of exports – valued at £225 million.

Mr Trump has previously threatened to impose tariffs on other countries and then relented, but he remains wedded to the overall idea of making the U.S. richer through taxing imports.

As a sign of the U.S. leader’s unpredictable approach, on the eve of the tariffs coming into force, he threatened to double the rate of Canadian metal imports from 25 per cent to 50 per cent before backtracking at the last minute.

Downing Street said there were “multiple engagements at multiple levels” with the U.S. administration as the government attempted to spare UK exporters from the tariffs.

(PA Media/dpa/NAN)