UK Reminds US Steel Import Tariffs Will Lose Both Countries

UNSPLASH/Rodrigo Santos ILLUSTRATION

JAKARTA - The British government warned that the planned steel import tariff by the United States government would harm the two countries.

Britain is currently seeking to get an exception to President Donald Trump's trade policy.

British Business Minister Jonathan Reynolds told the BBC, Britain and the US had "joint interests" to avoid a 25 percent import tax scheduled to take effect from March.

Reynolds stressed that the British steel industry offers highly specific and US-needed products, such as naval submarine layers manufactured in Sheffield, England.

"Imposing tariffs on British steel will have a negative impact on ourselves, as well as on the US," Reynolds said, warning this policy could increase costs for taxpayers in America.

The warning comes after the British government pledged support of up to 2.5 billion pounds (approximately 3.15 billion US dollars or around Rp. 51.2 trillion) to support the domestic steel industry, which is facing financial pressure due to rising costs and global competition.

UK Steel, an organization that represents the British steel sector, called Trump's tariff a "severe blow," considering the policy could have a major impact on British steel trade with the US worth 400 million (approximately IDR 8.17 trillion) per year.

Although Britain is not the main supplier of steel to the US -- as only 10 percent of the UK's total steel exports are shipped to Uncle Sam's country -- industry leaders fear this tariff will create precedents that disrupt trade relations.

Trump previously stated that this tariff would be applied "without exception or dispensation." However, Reynolds remains optimistic about the ongoing diplomacy process.

He claimed to have had "constructive talks" with important figures in the Trump administration, including the US special envoy to Britain.

Reynolds admits these negotiations are challenging, but it believes there is "the basis for constructive engagement" between London and Washington.

"I understand that they have a mandate to change their trade approach, but we have different arguments and stories compared to the European Union or China in our trade relations," he explained.

Despite the escalating tensions, the British government insists it will not take immediate countermeasures. On the other hand, they will continue to seek exemptions through diplomacy.