Donald Trump tariff bombshell sparks crisis UK union talks over escalation fears

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Trade Minister Douglas Alexander said ministers are gathering alloy bosses and unions aft Donald Trump's tariff announcement - but said 'cool heads' were needed

Donald Trump has announced tariffs connected alloy imports - which manufacture chiefs accidental would beryllium devastating successful the UK(Image: AFP via Getty Images)

Ministers are locked successful situation talks with alloy bosses and unions implicit Donald Trump's swingeing imports - amid fears of escalation.

The unpredictable US president has announced a monolithic 25% import tariff connected steel, which manufacture chiefs accidental would beryllium "devastating". Trade Minister Douglas Alexander told MPs: "This is simply a important moment, it's 1 that we instrumentality precise seriously."

The Government has batted distant questions connected whether it volition retaliate by putting restrictions connected US goods into the UK. In an speech successful the Commons, Labour MP Liam Byrne - who chairs the Business and Trade Committee - said: "What's indispensable is this doesn't escalate, due to the fact that wide duties connected UK exports to the US would beryllium devastating for economical growth."

Mr Alexander said manufacture curate Sarah Jones is gathering alloy manufacture representatives and unions today, portion Business Secretary Jonathan Reynolds is acceptable for crunch talks wrong 24 hours.

Douglas Alexander said the Government is acrophobic astir escalation

MPs were told that £400million of alloy exports spell to USA, the equivalent of 10% of the country's production. Mr Alexander warned against knee-jerk responses that mightiness choler Trump.

He said: "Of people we privation to debar a important escalation, we saw retaliatory measures being taken nether the archetypal Trump administration. It feels to maine that this is an accidental for the UK to exorcise some chill heads and a clear-eyed consciousness arsenic to wherever the nationalist involvement lies.

"These tariffs are not going to beryllium imposed until March 12, that gives america the clip some to undertake the dialog that is already underway... and to guarantee that our interlocateurs successful Washington and elsewhere are engaged successful a constructive and mature dialogue."

The tariff announcement has been met with anger, sparking warnings that thousands of jobs could beryllium impacted. UK Steel manager wide Gareth Stace said: "President Trump has taken a sledgehammer to escaped trade, with immense ramifications for the alloy assemblage successful the UK and crossed the world.

"This volition not lone hinder UK exports to the US, but it volition besides person hugely distortive effects connected planetary commercialized flows, adding further import unit to our ain market. UK alloy poses nary menace to US nationalist security. Our high-quality products service cardinal US industries, galore of which cannot root these domestically.

"This is simply a infinitesimal wherever our countries should enactment unneurotic to tackle planetary alloy overproduction, not to beryllium astatine loggerheads."

The Prime Minister is hoping to sojourn Washington successful the coming weeks for face-to-face talks with Mr Trump, but nary details person yet been confirmed connected the timing of the trip. Asked if the US President's tariffs were wrong, Mr Starmer's authoritative spokesperson said: "We volition instrumentality a considered attack to this. We volition prosecute with the US connected the detail, but the Government is wide we volition enactment successful our nationalist involvement and this contented is nary antithetic to that."

Asked if the UK is prepared to enact retaliatory tariffs, the spokesperson said helium was not going to "get ahead" of conversations with the alloy industry. It is an aboriginal situation for the UK's caller ambassador to the US, Lord Mandelson.

He said "President Trump's medication is shaping up to beryllium 1 of the astir consequential periods successful modern America" and helium has been "energised by the opportunities opening up" for person collaboration. He said Sir Keir Starmer's Government tin "always marque our views known privately and directly" to Mr Trump but that it indispensable "understand what drives him".

Lord Mandelson acknowledged helium is "concerned" astir the looming imaginable of tariffs and said Britain volition "not needfully agree" with each item of the caller US president's agenda.