US Steel Import Tariffs

Harriett Baldwin Excerpts

Tuesday 11th February 2025 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on US steel import tariffs.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

We have seen the proclamation issued by President Trump overnight, which enforces a full return to 25% tariffs on US steel imports on 12 March 2025. The US has so far published details only on steel, not on aluminium. The intended effect of the proclamation is to revoke existing arrangements that have avoided those tariffs, such as the UK-US resolution, as well as any separately agreed product exclusions from the tariffs.

What British industry needs and deserves is not a knee-jerk reaction but a cool and clear-headed sense of the UK’s national interest, based on a full assessment of all the implications of US actions. The Minister of State for Industry is meeting representatives of the steel industry and trade unions this very afternoon, and the Secretary of State for Business and Trade is in touch with representatives of the British steel industry and will meet them in the next 24 hours. Since July, we have engaged in a systematic way with the UK steel sector, and we will continue to engage with UK industries impacted by potential tariffs.

Historically, we have benefited from a strong and balanced trade relationship with the United States—worth around £300 billion and supporting millions of jobs. In trade policy, we stand ready to work with President Trump to find solutions that work for both the United Kingdom and the United States.

[Dame Harriett Baldwin]

The United States is our greatest ally and our greatest single trading partner. The UK and the United States are the biggest investors in each other’s economies. Yet this is a moment of great peril for the UK steel industry, because the Government have failed to engage with gusto with the new US Administration. The Prime Minister has not, despite his many air miles, got on a flight to the States at the first possible opportunity, and years of student politics-style insults hurled at the President by Government Front Benchers has put our relationship in jeopardy. And that was before the embarrassment of the Chagos islands situation showed that we have terrible negotiators running the country.

Can the Minister confirm what conversations he or the Secretary of State have had with their counterparts in the United States about steel tariffs? How many times has the Minister spoken with US trade representatives about this matter since Sunday? Will he confirm that the first 500,000 tonnes of steel to the US will be tariff-free, as they were under President Trump’s previous Administration? What economic analysis has the Department produced on the impact of the tariffs on jobs and on the wider UK economy, and what plans do the Government have to reciprocate with tariffs on US steel and aluminium, or on any other US goods? What are the Minister’s plans for the safeguarding measures against steel dumping, which expire in June?

We on the Conservative Benches have been calling on the Government to strain every sinew for a trade deal with the United States. Much work was done by the Department last time President Trump was in the White House. Will the Minister finally set out what plans the Government have to obtain a big, beautiful free-trade agreement with the United States?

[Mr Alexander]

Well, well—let me try to answer the various questions that the shadow Minister asks. First, on the big, beautiful deal that the Conservatives contemplated, I simply observe that that was one of a whole number of trade deals that they boast about but abjectly failed to deliver.

The hon. Lady described this as a moment of great peril for the UK steel industry. Frankly, we saw the UK steel industry suffer from a degree of neglect for many years under the previous Government. That is why we are the first Government in many years to set out a comprehensive steel strategy, including a commitment of £2.5 billion towards the future of the steel industry. We will take no lectures from Conservative Front Benchers on the UK steel industry.

On the hon. Lady’s substantive question about the degree of contact that we have had with the US trade representative, it may have eluded her attention that we do not yet have a confirmed US trade representative. We anticipate that Jamieson Greer will be confirmed by the US Senate in the next couple of weeks. Similarly, she might suggest that it is important for the Secretary of State to meet Howard Lutnick, the US Secretary of Commerce, but, alas, I must inform her that Howard Lutnick has not yet been confirmed. We stand ready to engage with the incoming Administration—be that with the USTR or the Secretary of Commerce—once we are in a position to do so.

In terms of the economic analysis, I hope the hon. Lady will understand, given how sensitive these issues are as we anticipate the further steps to be taken by the Trump Administration, that it would not be an altogether wise negotiating strategy to share the detail of the internal UK analysis of the potential effects of tariffs, which, I remind the House, are not due to be imposed until 12 March.