UK Avoids Direct Response to Trump's Tariff War... "Negotiation Rather Than Retaliation"

"Emphasizing Practical Negotiations with the US"

The UK has decided to withhold immediate retaliatory measures against US President Donald Trump's steel and aluminum tariffs. This approach contrasts with China, Canada, and the European Union (EU), which have immediately imposed retaliatory tariffs. The UK has been able to pursue independent policies separate from the EU since Brexit (withdrawal from the European Union) in January 2020.

UK: "Practical Approach to US Tariff Imposition"

According to foreign media including the Financial Times (FT), Prime Minister Keir Starmer responded in a parliamentary question session on the 12th (local time) that he was "disappointed with the US global tariff imposition on steel and aluminum." He added that the UK would "keep all options on the table" and is "negotiating economic deals (with the US) that include tariffs." A UK government spokesperson explained that this approach "reflects the desire of British industry to avoid a trade war that would worsen the situation for both sides (US and UK)."

In the short term, the UK is expected to focus on government support such as reducing energy costs in the heavy industry sector in response to US steel and aluminum tariffs. The FT noted that "Prime Minister Starmer did not announce immediate retaliatory measures (unlike the EU)," adding that "through this approach, he believes the UK will be protected from US tax impositions."

In recent years, UK steel exports have declined due to industrial decline. However, the US remains the second-largest export market for the UK after the European Union. Last year, the UK exported about 182,000 tons of steel to the US, accounting for 7% of total exports.

The UK exports hundreds of millions of pounds worth of steel to the US annually. However, the UK government's attitude indicates it will not take immediate retaliatory tariff measures, unlike the EU or Canada. According to the FT, UK exports of steel and aluminum to the US amount to about £700 million, while products made from steel and aluminum total around £2.2 billion.

The FT reported that "the additional burden from US tariffs is about £100 million," adding that "this amount is not considered significant enough to warrant immediate retaliatory measures, especially when trying to proceed with trade negotiations with the US."

EU and Canada: "Imposing Retaliatory Tariffs Against the US"

Unlike the UK, Canada and the EU have taken a tougher stance. The European Commission announced that it would impose retaliatory tariffs on US products worth about €26 billion (41 trillion won) starting next month. The plan is to restore tariff suspension measures on US products from July 1 and fully implement them from the 13th.

The EU listed boats, bourbon whiskey, and motorcycles among US imports for which suspensions will be lifted. Additionally, new tariffs will be imposed on US products including steel and aluminum products, textiles, leather, home appliances, wooden products, as well as agricultural products such as poultry, beef, eggs, and dairy products.

Canada also announced it would impose additional tariffs on $20.6 billion worth of US imports starting on the 13th as a retaliatory measure against the Donald Trump administration's tariffs. US products subject to tariffs include steel ($8.8 billion), aluminum ($2 billion), and other items such as computers and sports equipment.

China has recently made two decisions to impose retaliatory tariffs of 10-15% on US coal, liquefied natural gas (LNG), agricultural machinery, chicken, soybeans, and dairy products.

Reporter Kim Dong-hyun 3code@hankyung.com