Business Secretary Jonathan Reynolds is set to champion Britain’s steel industry during his visit to Washington, where he will engage in discussions with senior US officials on a potential UK-US economic deal. The talks come in the wake of former President Donald Trump’s announcement that there will be no exemptions from a 25% tariff on global steel and aluminium imports, a move that has sparked concern across the sector.
Pragmatic and positive trade discussions
The UK Government has emphasised that Mr Reynolds will pursue “pragmatic and positive” discussions on transatlantic trade as he meets his White House counterparts on Tuesday. He is scheduled to hold the first in-person talks with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer since the new administration took office.
His visit aims to represent the interests of key British industries, particularly the steel sector, and initiate talks on securing a broader economic agreement. Unlike the European Union, which has announced counter-measures against US tariffs, the UK Government has so far refrained from retaliatory action, preferring to engage in negotiations. However, ministers have voiced their disappointment and maintained that “all options” remain open to protect national interests.
Speaking ahead of the discussions, Mr Reynolds underscored the importance of securing a deal that benefits both nations:
“Protecting and growing the industries that power the UK and play a key role in delivering our Plan for Change is a priority for this government. Today’s visit to Washington DC is the latest step in our pragmatic and positive engagement with the new administration to agree a wider economic deal in both our interests.”
He further highlighted the long-standing economic relationship between the UK and the US:
“The UK and US share a fair and balanced relationship, one that has benefited both sides for many decades, and we will both benefit as we strengthen this relationship further.”
The impact of US tariffs on UK steel
The imposition of a 25% tariff on steel imports and a 10% tariff on aluminium imports has raised serious concerns within the UK’s manufacturing sector. According to the Department for Business and Trade (DBT), around 5% of UK steel exports and 6% of aluminium exports by volume go to the US. However, trade bodies representing the industries argue that these figures underestimate the true scale of shipments across the Atlantic.
The British steel industry has already been grappling with multiple challenges, including fierce global competition, rising energy costs, and the transition to greener technologies. The latest tariffs present yet another hurdle, potentially threatening jobs and investment in a sector that has already experienced significant losses in recent years.
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Government strategy and future negotiations
Downing Street has remained tight-lipped on whether Mr Reynolds will directly push for a tariff exemption, but a spokesperson for Prime Minister Sir Keir Starmer confirmed that discussions would centre on securing a broader economic deal:
“I’m not going to get ahead of his talks, but he’s going to continue these discussions on a wider economic deal with the US and that’s what we’re focused on at the moment.”
While the UK Government has so far refrained from announcing retaliatory measures, it continues to explore options to support the steel industry. Ministers have indicated that they will assess all possible responses to ensure that British manufacturers remain competitive in the global market.
The stakes are high, as any prolonged trade restrictions could further weaken an industry that has already suffered job losses and financial difficulties. Reynolds’ visit represents a critical opportunity to advocate for UK steelworkers and forge a stronger trade partnership with the US.
As discussions unfold in Washington, industry leaders and workers alike will be watching closely, hoping for a breakthrough that ensures the future viability of Britain’s steel sector in an increasingly complex global trade landscape.
