Britain to demand exemptions from Trump's steel tariffs
Jonathan Reynolds said that he would raise the tariffs issue as soon as the US Senate confirms the appointment of Howard Lutnick, Mr Trump's pick for commerce secretary.
Mr Reynolds added that while there was 'significant overcapacity' around the world in steel, the UK was not the cause of it, and that the US defence industry relied heavily on British imports.
'I think there's a basis for a discussion,' he said.
Mr Trump announced 25pc tariffs on worldwide steel and aluminium imports on Monday, saying they would come 'without exceptions or exemptions' and that the UK would not escape them.
'We have a huge deficit with the UK. Big difference,' Mr Trump said.
When asked about the tariffs on Thursday, Mr Reynolds said: 'Specifically on the steel and aluminium issue, there is significant overcapacity around the world. I understand that [and] we have similar concerns around that, but we're not the cause of that.
'Our steel sector is very small relative to the size of our economy. I think it should be bigger. If you look at the kind of products we are sending to the US in steel, aluminium, they're either quite sensitive defence ones from Forgemasters in Sheffield, or they're parts of the wider US manufacturing supply chain.
'So I'll be seeking to engage as soon as the Senate confirms my counterparts on the policies they put forward.
'I believe we can engage with them on their agenda. And I do feel that where there are concerns about the global steel and aluminium industries, very strong cases. The UK is not the problem within that. I think there's a basis for a discussion.'
Mr Trump introduced a tariff on steel in 2018, and Joe Biden relaxed the restrictions in 2022, with some UK exporters also securing exemptions. UK Steel, the industry lobby group, called this week's announcement 'a sledgehammer to free trade'.
Mr Reynolds said it was not in the national interest to put tariffs on Chinese electric vehicles, saying that retaliation from Beijing would damage the UK carmaking industry.
He was speaking after he announced a new 'strategic steer' for the Competition and Markets Authority that will urge it to speed up investigations and focus on UK issues, in contrast to many of the big tech investigations the regulator has launched in recent years.
Mr Reynolds suggested the UK might need fewer regulators in future as part of a red tape cutting drive, saying: 'We've also got to genuinely ask ourselves the question, have we got the right number of regulators?'
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