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President Donald Trump unveiled higher tariffs on steel and aluminium imports on Monday night in a measure that UK producers say will prove a “devastating blow”.
Mr Trump signed proclamations that raised the tariff rate on aluminium imports to 25pc from the previous 10pc that he imposed in 2018 to aid the struggling sector.
His action reinstates a tariff on millions of tons of steel imports and aluminium imports that had been entering the US duty free under quota deals, exemptions and thousands of product exclusions.
The proclamations were extensions of Trump’s 2018 national security tariffs to protect steel and aluminium makers. A White House official said the exemptions had eroded the effectiveness of these measures.
Mr Trump will also impose a new North American standard requiring steel imports to be “melted and poured” and aluminium to be “smelted and cast” in the region to curb imports of minimally processed Chinese steel into the US.
The order also targets steel products that use imported steel for tariffs.
Trump’s trade adviser Peter Navarro said the measures would help US steel and aluminium producers and shore up America’s economic and national security.
“The steel and aluminium tariffs 2.0 will put an end to foreign dumping, boost domestic production and secure our steel and aluminium industries as the backbone and pillar industries of America’s economic and national security,” he told reporters.
“This isn’t just about trade. It’s about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminium.” Mr Trump first broached the steel and aluminium action on Sunday, adding that he would also announce a further set of reciprocal tariffs later in the week, drawing warnings of retaliation from trade partners.
The tariffs will threaten job losses in the UK, manufacturing chiefs have warned.
Gareth Stace, director general of UK Steel, said: “The imposition of US tariffs on UK steel would be a devastating blow to our industry.”
Alasdair McDiarmid, assistant general secretary of the Community Union, added that new tariffs “would be hugely damaging and threaten jobs.”
The UK’s steel industry employs 33,000 people directly, as well as a further 42,000 through supply chains.
UK steel exports to the US in 2024 were on track to hit 178,000 tonnes, worth £364m and nearly a tenth (9pc) of all UK steel exports, making it Britain’s second largest market after the EU, according to industry data.
Mr Stace said: “At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over £400m worth of the steel sector’s contribution to the UK’s balance of trade.”
The UK negotiated a quota system with the US after Mr Trump imposed tariffs during his first term in 2018, allowing Britain to export 500,000 tonnes of steel to the US tariff-free.
Mr Stace said: “The introduction of further US tariffs will inevitably divert global trade flows, with excess steel potentially redirected to the UK market.
“This reinforces the urgent need for watertight UK trade measures in 2026 to prevent surges in imports following the UK’s steel safeguards expiry.”
Mr Stace urged the Government to “act decisively to shield our domestic industry from the fallout of rising global protectionism” and accelerate the introduction of the UK’s Carbon Border Adjustment Mechanism (CBAM), a tax on high-emission steel imports that is due to come into effect in January 2027.
The blow will hit as manufacturers are scrambling to adapt to the Government’s net zero goals.
Britain’s largest producer Tata Steel in October signed a contract with a metals technology manufacturer to deliver an electric arc furnace at Port Talbot, which will reduce the site’s carbon emissions by 90pc. Tata indicated that the tariffs will have no impact on these plans.
A government spokesman said, prior to Mr Trump’s official announcement, it would be seeking further details on the US president’s plans.
01:38 AM GMT
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12:58 AM GMT
Asian stocks set for tepid open
Stocks in Asia are set for a tepid open following the US President’s 25pc tariffs on all US imports of steel and aluminium.
The dollar strengthened and gold hit a record.
Equities opened slightly higher in Australia, while futures were flat for Hong Kong and edged lower for US stocks.
12:51 AM GMT
Reeves says ‘a deal can be done’ with Trump to avoid tariffs
A “deal can be done” with Donald Trump to avoid punishing tariffs on British firms, Rachel Reeves has said.
The Chancellor said she had spoken to Scott Bessent, the US Treasury Secretary, and was “strongly” of the opinion that the two countries could work together on trade.
She said the two countries had balanced trade, meaning tariffs would not be necessary.
“I believe in free trade. I think that is good for both of our economies. Unlike many other countries around the world, we don’t run a trade surplus with the US,” she said.
Read the full story by Daniel Martin here
12:12 AM GMT
Peter Mandelson: I don’t think we should be overreacting on tariffs
Peter Mandelson, Britain’s newly-appointed ambassador to the US, said Donald Trump would not target the UK directly with tariffs.
The Labour peer, who began his role on Monday, vowed to focus on making sure Britain “does not become collateral damage” in the US president’s ongoing trade war.
Speaking for the first time since arriving in Washington DC, Lord Mandelson said he was “concerned” about the possibility of tariffs on the UK.
He added, however: “We actually have a very balanced trade relationship between Britain and the US. I don’t believe that his tariffs are actually directly targeted at us.”
He told the BBC: “That shouldn’t make us complacent, and I’m not complacent. I’m going to focus, in a laser-like way, on the dialogue between us to make sure that we do not become collateral damage in the US.
“But in the meantime, I don’t think we should be overreacting.”
Read the full story by Connor Stringer here
12:04 AM GMT
Trump will consider tariff exemption for Australia
Donald Trump has agreed to consider an exemption for Australia from the planned US tariffs on steel and aluminium following a phone call between him and Australian Prime Minister Anthony Albanese.
Mr Albanese, who will seek a second term in elections due by May 17, has been under intense pressure from Australian lawmakers and industries to secure tariff exemptions for the country’s steel and aluminium exports to the US.
“I presented Australia’s case for an exemption, and we agreed on wording to say publicly, which is that the US president agreed that an exemption was under consideration in the interests of both of our countries,” Mr Albanese told reporters in Canberra on Tuesday.
Mr Albanese added: “The US has a trade surplus with Australia that it’s had since the Truman administration. It’s about two-to-one when it comes to trade between our two countries.
“When you look at the imports of these products into the US, it’s about 1pc of imports of steel, 2pc of aluminium.”
11:46 PM GMT
Mark Carney pledges ‘dollar-for-dollar tariffs’
Mark Carney, who would like to be Canada’s next prime minister, said this evening: “Trump wants us to lose our cool. But we need to stay united, with the right response.”
The former Bank of England chief added: “In the short term, Canada needs to manage foreign trade threats with dollar-for-dollar tariffs and supports for our critical steel and aluminium workers. And as we look to the future, we’ll need a coordinated strategy to boost investment, make our companies more competitive, and diversify our trading partners.”
11:39 PM GMT
US steel tariffs will harm America, warns economist
Steel tariffs mean higher prices for Americans and the loss of US jobs, an economist has warned.
Benn Steil, director of international economics at the Council on Foreign Relations, said: “Fairness is in the eye of the beholder, but the more fundamental question is whether the US actually benefits from such new tariffs.
“The costs to the US will include higher prices to US consumers, retaliatory tariffs abroad, and the loss of US jobs and competitiveness in firms hit by higher input costs.”
Mr Steil noted that other countries are already adopting Trump’s approach from his first term as the president imposes tariffs on the premise that the imports create national security risks. That is because national security-related tariffs are legally unchallengeable at the World Trade Organisation, meaning that so far Mr Trump’s approach has encouraged other countries to increase trade barriers.
“Not surprisingly, everything from ‘door frames’ to ‘alcoholic beverages’ have of late been subject to new import barriers in the developing world on the grounds of national security,” Mr Steil said.
Of the roughly 29m net tons of steel imported into the United States last year, a little under 2pc came from China. But the White House maintains that exemptions to the tariffs provided over the previous four years by the Biden administration enabled steel and aluminium from China and Russia to go through other nations to reach the United States.
11:34 PM GMT
Trump imposes fresh tariffs on steel and aluminium
Donald Trump tonight signed an order to impose tariffs at a minimum of 25pc on all steel and aluminium. The move, which axes exemptions from his 2018 tariffs on steel, mean that UK producers will struggle to export to the US.
“We were being pummelled by both friend and foe alike,” Mr Trump said as he signed two proclamations on steel tariffs. “It’s time for our great industries to come back to America.”
The moves are part of an aggressive push by the president to reset global trade, with Trump saying that tax hikes on the people and companies buying foreign-made products will ultimately strengthen domestic manufacturing. But the tariffs will hit allies.
Mr Trump also intends this week to reset US taxes on all imports to match the same levels charged by other countries. All of that comes on top of the 10pc tariffs he already put on China.
The steel tariffs almost immediately drew criticism from Canada, the largest source of steel imports. Candace Laing, president of the Canadian Chamber of Commerce, said that Trump was a destabilising force in the global economy.
“Today’s news makes it clear that perpetual uncertainty is here to stay,” said Ms Laing.
05:35 PM GMT
Oil giant and miners push FTSE 100 to all-time high
London’s blue-chip FTSE 100 closed at an all-time high on Monday, boosted by oil giant BP. A rise in precious metal miners also powered gains on the index.
BP topped the FTSE 100 index, gaining 7.4pc, its biggest daily gain in two years, after investor Elliott Management built a stake in the oil company. It is expected to press for changes in strategy and the board.
The energy sector rose about 2.1pc, as oil prices ticked higher globally, coming off of three straight weeks of declines.
The mining sector saw a 3.6pc increase, as gold prices continued its record run on safe-haven demand after Donald Trump’s tariff move amplified trade war and inflation concerns.
Drax gained about 3.8pc after the Britain’s largest renewable power generator stuck a deal with the UK government over subsidies from 2027 to 2031.
The FTSE 100 index rose 0.8pc, while the domestically focused FTSE 250 index advanced 0.9pc.
The pan-European Stoxx 600 index ended 0.6pc higher, as investors looked past Trump’s moves on tariffs.
05:17 PM GMT
Wall Street gains as investors ‘buy the dip’
Wall Street has risen today as optimistic investors take advantage of lower prices.
Patrick O’Hare, a Briefing.com analyst, said that losses of more than one percent on Friday “presumably triggered the buy-the-dip crowd that is driving the action”.
He added: “There seems to be a healthy allowance, too, for the expectation that the stock market will quickly bounce back from last week’s losses like it always has on its bull market jaunt to record highs.”
05:09 PM GMT
Global stocks rise as investors show ‘tariff fatigue’
Global stock markets rose today, as traders appeared to shrug off Donald Trump’s plan for steel and aluminium tariffs.
This was in contrast to a week ago when tariff announcements from Trump sent global equities tumbling.
The fact that stock markets are up this time around “could be a sign of tariff fatigue”, said Kathleen Brooks, research director at trading group XTB.
Mr Trump warned over the weekend that every country would face unspecified “reciprocal” levies.
Regarding steel and aluminium, the United States will move to impose tariffs as early as this week, Mr Trump said.
In shares trading, both London and Frankfurt set fresh records. The FTSE 100 rose 0.8pc, hitting an all-time high, while the FTSE 250 gained 0.8pc.
Hong Kong and Shanghai stocks rose on Monday, even as hopes of a delay to Trump’s tariffs against China were dashed.
Chinese tech firms extended gains, buoyed by the success of AI startup DeepSeek.
Investor sentiment was boosted by a “mixture of trade restrictions not being as bad as they might have been and hope for further Chinese stimulus”, said Derren Nathan, senior equity analyst at Hargreaves Lansdown.
Tokyo was flat, despite Trump’s threats to target Japanese goods should the US trade deficit with the country fail to equalise.
04:57 PM GMT
Tech giants rebound after difficult week
Wall Street’s main indexes are up this afternoon. Most heavyweight technology stocks are rebounding after a steep fall last week, while steelmakers surged after Donald Trump said he would impose additional tariffs on steel and aluminium imports.
AI chip giant Nvidia rose 2.4pc, while Microsoft and Google-owner Alphabet climbed more than 1pc each.
Dennis Dick, at Triple D Trading, said: “There’s still this underlying theme that people want to be invested in tech stocks and AI.
“Those stocks continue to get bought on dips. [They] continue to outperform overall.”
Major technology stocks fell sharply on Friday after Trump announced reciprocal tariffs on all countries, matching the tariffs levied by them.
Currently, the S&P 500 is up 0.6pc, the Do is up 0.2pc and the Nasdaq Composite is up 1.1pc.
04:44 PM GMT
Eurozone yields near 5-week lows after Trump’s new tariffs pledge
German government bond yields edged down on Monday, near their lowest levels in over a month, as caution prevailed after Donald Trump pledged more new tariffs.
Germany’s 10-year bond yield, the benchmark for the eurozone bloc, was down at 2.354pc from 2.374pc on Friday.
Analysts expect import duties on European countries to have a significant negative impact on economic growth, while inflationary pressures from potential European retaliation would likely be negligible.
The European Commission said today that it would react to protect EU interests but added it would not respond until it had detailed or written clarification of the measures.
Mr Trump also promised detailed information on Tuesday or Wednesday on his reciprocal tariff plan.
“Markets fear that Trump’s ‘reciprocal tariffs’ could further weigh on the already gloomy growth outlook for the euro area,” said Commerzbank rates strategist Rainer Guntermann.
04:28 PM GMT
UK a ‘free-trading nation’ says Downing Street as it awaits steel tariff news
The UK government said today that it is “ready for all situations” but has not seen details of his plans yet.
Ministers “haven’t seen any detailed proposals following the reporting overnight, but will obviously engage as appropriate”, Sir Keir Starmer’s spokesman told reporters.
“The government is committed to supporting the UK steel industry,” he added, noting “we always undertake extensive preparations of government to be ready for all situations”.
The spokesman also stressed the UK is “an open free-trading nation” which has “a very deep and balanced trade relationship with the United States”.
04:26 PM GMT
UK steel lobbyists warn of ‘devastating blow’ from Trump tariffs
The trade association for the UK steel industry has called Donald Trump’s plans to impose 25pc tariffs on steel and aluminium imports a “devastating blow”.
UK Steel’s director general Gareth Stace said the looming tariffs were “deeply disappointing” given Britain’s “relatively small production volumes compared to major steel nations”.
“The UK produces world-leading steel, supplying the US with high-quality products for defence, aerospace, stainless, and other critical sectors, materials that simply cannot be replicated elsewhere,” he added.
“The imposition of US tariffs on UK steel would be a devastating blow to our industry.”
The US accounts for around 10pc of British steel exports, shipping nearly £400m worth there in 2023.
Aluminium sales to the United States represent around six percent of that sector’s overall exports, according to the UK government.
The UK steel industry has suffered in recent years, in particular as costs soared after energy prices surged in the wake of Russia’s invasion of Ukraine.
The sector has seen thousands of job losses and some furnace closures in recent years, as it also seeks to decarbonise with government funding support.
Alasdair McDiarmid, of the trade union Community, said tariffs would be “self-defeating” for the US “as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors.
04:09 PM GMT
Stocks rise despite tariff threats
Stock markets are taking Donald Trump’s latest noises on tariffs in their stride. Major indexes around the world are almost all up today.
Chris Beauchamp, chief market analyst at online trading platform IG: “Had an investor just woken up from a month asleep, it would seem that there wasn’t much to worry global markets right now.
“Friday’s inflation panic and tariff jitters have been entirely forgotten over the weekend. This Monday is very different from its two predecessors.
“Two weeks ago saw the DeepSeek AI news roil markets, and a week ago it was the Mexico/Canada/China tariffs, but the third time has been the charm for investors, who have surged back into the market despite recent developments.
“As ever, markets climb the wall of worry.”
04:06 PM GMT
UK should copy Trump and protect steel, says trade union
The British Government should take a leaf out of Donald Trump’s book and only use UK steel “wherever possible”, a leading union has said.
Unite, one of Britain’s biggest unions, has called for a change in public sector procurement rules. It said that this would be legal as long as the UK designated the steel industry as “critical national infrastructure”.
Sharon Graham, head of Unite, said: “Donald Trump’s steel tariff threat should be a wake-up call for this government. I have long been calling for the steel industry to be classified as critical national infrastructure – just as it is in the US.
“UK steel production is a matter of national security. We now need to change the rules to ensure that the public sector buys UK produced steel, wherever it is available. This will create jobs and drive growth.”
04:00 PM GMT
Trump’s favourite fast-food chain points to struggling Americans
Donald Trump’s favourite takeaway restaurant has warned of a “pretty muted” market in America and lower sales in the UK.
McDonald’s said that custom from low-income diners in America fell significantly in the final quarter of 2024.
Chris Kempczinski, chief executive, said: “The overall market is pretty muted.” But he added: “Should the underlying environment improve beyond our initial expectations, especially with respect to lower-income consumers, we would expect to benefit disproportionately relative to our competitors.”
McDonald’s revealed that its sales weakened in the UK last year while the fast-food giant enjoyed a rebound in demand from diners in the Middle East following boycotts.
03:38 PM GMT
Steel tariffs to squeeze US construction sector
Tariffs on imported steel will squeeze margins and cause delays in the US building industry, insiders and academics have warned.
Todd Miller, president at Isaiah Industries, a manufacturer of metal roofing, warned: “Tariffs do concern me going into our busy season that they will cause delays and higher prices from our domestic sources.”
Nigel Driffield, professor of international business and strategy at Warwick Business School, said: “It is reasonable to assume that the producer will be able to pass on most of the cost to the US importer.
“As steel is largely an input into other products or processes, this will simply put the price up for US users.”
Steel manufacturers are trying to bring their supply chain closer or into the US to offset the impact of a tariff hike, which Citi Research said would raise import costs by about $150 (£121) per ton. ArcelorMittal, the world’s second-largest steel-maker, is planning to build a manufacturing facility in Alabama to supply to the automotive sector, one of the largest buyers of domestically produced steel.
03:27 PM GMT
Mexico to await potential Trump tariffs before reacting, says president
Mexico will wait to see if Donald Trump announces tariffs on steel and aluminium imports before reacting, its president Claudia Sheinbaum said this afternoon.
Mr Trump is expected to introduce new 25pc tariffs today on all steel and aluminium imports into the United States, on top of existing metals duties.
Mexico is a top steel exporter to the United States.
03:24 PM GMT
Trump’s steel tariffs will have ‘negligible’ effect on China
Donald Trump’s tariffs will make little difference to China because the US already has punitive tariffs on Chinese steel, economists have said.
Jennifer McKeown and Hamad Hussain. of Capital Economics, said: “The impact on China’s economy will be negligible. The US already has high tariffs on Chinese steel (47.5pc) and aluminium (32.5pc), which means that trade is already limited and the incremental impact of even higher tariffs should be small.
“While China did still send $2.5bn worth of the metals to the US last year, this represents just 0.5pc of its exports to the country and 0.01pc of its GDP.”
In fact, it is Canada - which Mr Trump says should become part of the United States - which will be most affected.
The economists said: “Trade in steel and aluminium makes up just 2.5pc of world trade and only a fraction of that involves the US, so these tariffs in themselves are no game-changer. Looking at individual economies, Canada is the most exposed since its exports of steel and aluminium to the US account for around 1pc of GDP. Next in line are the UAE, Mexico, South Africa and Brazil.”
The warned, however, that higher inflation from tariffs seems to be coming to America, despite the limited impact of steel and aluminium tariffs. They said: “While these particular tariffs will boost US inflation only slightly (steel and aluminium account for only 3.3pc of US imports and are intermediate, rather than final consumer, goods), they serve as a reminder that deals in some areas do not preclude tariffs in others.
“We still think that broader measures are coming which will push US inflation above 3pc later this year. And unless this threat is removed (which seems improbable), the Fed is likely to stay on the sidelines rather than cutting interest rates further in the months ahead.”
03:15 PM GMT
Wall Street pushes higher as Trump’s tariffs lift steel-makers
Wall Street’s main indexes have moved higher this afternoon, recovering from last week’s declines, as US steel makers surged.
They rose after President Donald Trump said he would impose additional tariffs on steel and aluminium imports.
Mr Trump’s latest trade escalation came on Sunday when he said he would introduce 25pc tariffs on all imports of steel and aluminium into the United States, on top of existing duties on the metals.
US Steel gained 3.4pc after Japan’s chief cabinet secretary said Nippon Steel was considering proposing a bold change in its plan to buy the company.
Shares of other steel-makers also soared, with Cleveland-Cliffs adding 11.5, and Nucor gaining 5.4pc. Aluminium producer Alcoa was up 3.8pc.
Giuseppe Sette, head of market research firm Reflexivity, said: “We’re certainly in an unmarked territory. It’s not every day that an administration is so decisive with its executive powers as to take so much action altogether.”
The S&P 500 is up 0.6pc, the Dow is up 0.3pc and the Nasdaq is up 1.1pc.
03:10 PM GMT
Bets on rate cuts edge down amid Trump tariff worries
Thanks for joining us on this afternoon. I’m Alex Singleton and will be with you here until the evening.
Traders’ bets on UK interest rate cuts have edged down slightly today after Donald Trump gave a further signal over the weekend of fresh tariffs.
Tariffs raise prices, therefore making it more difficult for central bankers to hit their inflation targets.
None the less, the market is still fully pricing in two rate cuts of 0.25 percentage points by the end of the year.
02:58 PM GMT
Wall Street opens higher as US steelmakers surge
Wall Street opened the week higher after Donald Trump’s tariff plans sent US steelmakers surging.
The Dow Jones rose 0.21pc at the open, while the S&P 500 was up 0.34pc and the Nasdaq jumped 0.74pc.
It means Wall Street’s main indices recovered from last week, when stocks were hit by nervousness over the risk of a trade war.
US steelmakers led the gains on Monday morning in New York, with Nucor, US Steel and Cleveland-Cliffs shares all jumping on the market open.
02:46 PM GMT
Brazil considers new US tech taxes
Brazil is reportedly planning to introduce new taxes on US tech companies if Donald Trump pushes ahead with his steel tariff plans.
According to newspaper Folha de S.Paulo, the Brazilian government is plotting levies on companies including Amazon, Meta, which owns Facebook and Instagram, and Alphabet-owned Google.
Brazil is one of the largest sources of US steel imports.
Brazil’s finance minister Fernando Haddad said the government would wait until a formal announcement over the metal tariffs before responding with its own measures.
He said: “The government has decided to comment only on concrete decisions, not announcements that could be misinterpreted or revised. The government will wait for an official decision before making any statement.”
02:34 PM GMT
German Chancellor warns over retaliatory tariffs
The German Chancellor has become the latest European leader to warn over a looming trade war, after Donald Trump signalled he was escalating tariffs on Sunday.
Chancellor Olaf Scholz said anyone imposing tariffs must expect retaliatory tariffs, when asked about the threat of the US president’s metals levies.
He said: “Currently, given that nothing is yet official, we can only say with great caution but great clarity: Anyone who imposes tariffs must expect counter-tariffs.”
It comes after Emmanuel Macron over the weekend said he was willing to go “head-to-head” with President Trump over tariffs.
He said the EU should not be a top priority for the US in its trade war, saying: “Is the European Union your first problem? No, I don’t think so. Your first problem is China, so you should focus on the first problem.”
02:07 PM GMT
FTSE 100 rises to record high on BP boost
The bluechip index has risen to an all-time high after a boost from oil major BP.
The FTSE 100 rose to hit 8,769.27 on Monday afternoon. It follows weeks where the index has been gaining, driven by the stronger dollar.
The latest boost came after BP shares were sent soaring by reports of activist investor interest.
01:27 PM GMT
US imports of steel and aluminium in charts
12:56 PM GMT
No 10 waiting for details on Trump’s metal tariffs
More countries are starting to respond to the threat of new tariffs on steel and aluminium.
As Jack Maidment reports, Downing Street said the UK will “engage as appropriate” with the White House on Donald Trump’s proposed tariffs on steel and aluminium.
No 10 said the UK and the US “work closely together on a range of economic issues” and they will “continue to have those conversations with counterparts in the US”.
But the Prime Minister’s official spokesman said the Government was still waiting to see the details on the levies.
“It would be wrong to speculate given we haven’t seen any detail,” the spokesman said.
Downing Street said the US was the destination for approximately 5pc of UK steel exports in 2023.
12:39 PM GMT
Readers on Brussels’ warning to Trump
12:09 PM GMT
Ed Davey demands action to protect UK workers from Trump steel tariffs
Sir Ed Davey said Sir Keir Starmer must not leave British steelmakers “at the mercy of Trump’s tariffs”.
Jack Maidment has the latest:
The leader of the Liberal Democrats urged the Prime Minister to immediately convene a “Four Nations summit” with the leaders of the devolved administrations to agree a joint plan on how best to respond to the US president’s proposed levies on steel and aluminium.
11:49 AM GMT
Trump’s tariffs could end UK steel exports to US, says IFS chief
Donald Trump’s tariffs could end UK steel exports to the US, according to the director of the Institute for Fiscal Studies.
As Jack Maidment reports, Paul Johnson said exports to the US made up a “relatively small fraction” of overall UK steel exports but he believed the levies proposed by Mr Trump “may well be enough to end that particular bit of our steel exports”.
The US president announced overnight that he intended to impose 25pc tariffs on all steel and aluminium imports.
Asked if the UK should be worried, Mr Johnson told Times Radio: “It’s a relatively small fraction of our steel, but it may well be enough to end that particular bit of our steel exports.”
He said it “will pose some problems” for the UK.
“I think it is, as I say, a strange thing to be putting tariffs on, and it’s going to create additional inflation, at the very least, in the United States and that will have knock-on effects in itself, in terms of interest rates probably across the rest of the world,” he said.
The UK exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.
11:25 AM GMT
Gold hits record high over tariff risk
Gold has hit a record high on the news that further tariffs are coming from the US president.
Bullion climbed to an all-time peak above $2,895 an ounce, as fears over a looming trade war sparked a dash towards safe assets.
It follows the suggestion of new metals tariffs from Donald Trump last night, adding to an already tense atmosphere as Federal Reserve Chair Jerome Powell prepares for his semiannual congressional testimony.
Westpac Banking Corp. analyst Richard Franulovich said: “Gold remains in a sweet spot, with little standing in its way.
“An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100pc tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe-haven appeal.”
10:54 AM GMT
UK to miss new home targets, builders suggest
The Government will miss its targets for new homes by a long way, a third of builders believe, amid pressure for companies to do more on affordable houses.
A new Knight Frank survey found that many housebuilders were only expecting the UK to build half of the 300,000 homes it is targetting this year.
The Government has set out plans to build 1.5 million homes over the next five years, reaching around 300,000 homes every years.
However, homebuilders have raised concerns that the UK will fail to meet this target, given tough rules on developers over affordable homes and a lack of funding for social housing providers.
Knight Frank senior analyst Anna Ward said: “Housing associations once played a crucial role in supply but now struggle to deliver high volumes, causing delays for developers.”
10:27 AM GMT
US steel and aluminium makers jump on Trump tariff plans
Shares in US steel and aluminium makers jumped in premarket trading following Donald Trump’s announcement over new trade tariffs.
Nucorwere was trading up 9.5pc, while Steel Dynamics rose by 6.3pc, Century Aluminum by 9.4pc and Alcoa by 5.9pc.
Meanwhile, in European, steelmakers including ArcelorMittal , Voestalpine and Salzgitter slipped.
DZ Bank analysts said: “The major structural challenges that already exist in the German steel sector could be exacerbated by tariffs.”
10:00 AM GMT
Worst jobs slump since pandemic in wake of Budget ‘gloom’
New job openings have fallen at their fastest pace since the pandemic amid widespread “gloom” in the wake of Rachel Reeves’s Budget.
As Louis Goss reports, the volume of permanent vacancies in the UK dropped for the 15th month in a row in January and at the fastest pace since August 2020, according to KPMG and the Recruitment and Employment Confederation (REC). Vacancies for temporary workers also fell sharply.
09:29 AM GMT
Labour signals support for biomass fuel with Drax deal
The Government’s announcement this morning that it is pushing ahead with new subsidies for Drax comes after the Telegraph revealed the UK would strike a new deal for the wood burning power plants late last week.
On Friday, the Telegraph reported that the Energy Secretary would this week signal his continued support for biomass fuel with a new subsidy deal.
Announcing the tie-up on Monday, Will Gardiner, Drax’s chief executive, said the deal was “an investment in UK energy security”.
He said: “Under this proposed agreement, Drax can step in to increase generation when there is not enough electricity, helping to avoid the need to burn more gas or import power from Europe, and when there is too much electricity on the UK grid, Drax can turn down and help to balance the system.”
However, it risks being seen by environmentalists as a betrayal of Labour’s promises to focus on clean energy.
Drax’s biomass plant, which generates power by burning wood, is classed as carbon-neutral as trees can be planted to replace those burned for fuel.
It still generates immediate emissions and has been blamed for fuelling deforestations.
09:06 AM GMT
EU waiting for ‘details or written clarification’ on US tariff plans
The European Commission has said it will wait to respond to new US metals tariffs until it has seen details or written clarification on the measures.
The EU is expected to be included in the planned US move to introduce 25pc tariffs on all steel and aluminium imports, with Donald Trump saying on Sunday he was looking to hit every country.
The Commission said on Monday: “At this stage, we have not received any official notification regarding the imposition of additional tariffs on EU goods. We will not respond to broad announcements without details or written clarification.
“The EU sees no justification for the imposition of tariffs on its exports. We will react to protect the interests of European businesses, workers and consumers from unjustified measures.”
08:48 AM GMT
BP shares jump on activist investor reports
Shares in BP have jumped to their highest level in six months, after activist investor Elliott Management targetted the oil giant.
BP was trading almost 7pc higher on Monday morning, putting it on course to record its largest daily gain since early 2023.
On Saturday, reports emerged that Elliott Management had built up a position in the oil major, although the size of the stake was not disclosed.
It has sparked speculation that the company could be set for an overhaul, after facing years of criticism over underperformance.
Biraj Borkhataria, an analyst at RBC Capital Markets, said: “For BP, given the circumstances around the changes to its previous CEO, we think any activist would call for a change in the chairperson at the very least.”
Murray Auchincloss, BP’s chief executive, is due to set out a new company strategy on Feb 26.
08:20 AM GMT
UK cuts subsidies for biomass power producer Drax
The UK is cutting subsidies for power company Drax in half for the 2027-2031 period.
The Government said Drax would only be providing low carbon dispatchable power when it is “really” needed, with plans for it to play a much more limited role in the energy system.
Under the new deal, announced on Monday, Drax will need to switch to using 100pc woody biomass from sustainable sources, up from the previous level of 70pc.
The Government said it believed the new deal would save consumers £170m in subsidy each year of the agreement compared with the alternative of procuring gas.
08:02 AM GMT
India considers cutting more tariffs in bid to boost US trade
India is considering cutting more tariffs to help boost American imports ahead of a US visit by Narendra Modi this week.
The country is reportedly planning to cut tariffs at least a dozen sectors including electronics and chemicals in an effort to avoid a potential trade war with the US.
Indian prime minister Narendra Modi is set to meet with Donald Trump this week during a two-day US visit.
It follows claims by the US president that India is a “very big abuser” on trade. He has called for India to buy more American-made security equipment to create a fairer two-way trading relationship.
In a statement on Monday, Mr Modi said: “This visit will be an opportunity to build upon the successes of our collaboration in his (Trump’s) first term.”
07:42 AM GMT
Balanced trade ‘in the best interests’ of US and UK, minister says
Maintaining “balanced trade” between the US and UK is in “the best interests” of both countries, Dame Angela Eagle has said, after the US threatened new steel tariffs.
Speaking to Sky News, the Minister of State at the Home Office said: “We have a very balanced trading relationship with the US, I think £300bn worth of trade between our countries, and I think it’s in the best interests of both of us, as long-standing allies and neighbours, that we carry on with that balanced trade.
“We will have to wait and see whether the president gets more specific about what he meant by that comment on the way to the Super Bowl.”
07:32 AM GMT
Canada, Mexico and the EU to be hardest hit by Trump tariff move
President Trump’s plans to introduce new tariffs on steel are expected to hit countries including Canada, Mexico and the EU hardest, with China avoiding a major blow.
Charu Chanana, chief investment strategist at Saxo in Singapore, said: “These threats appear legitimate and within Trump’s power to implement on the basis of national security. The old playbook can’t be used because China is no longer a significant supplier of steel to the U.S. after the 2018 tariffs.
“Instead, the impact will be more pronounced on countries like Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil. The immediate concern, however, might not be inflation, as there could be counter effects such as demand slowdown. The bigger concern is the uncertainty and the shift towards a more protectionist world.”
07:06 AM GMT
Good morning
5 things to start your day
1. Complex tax system costs British businesses £15bn a year | Britain’s “increasingly complex” tax system is costing businesses £15.4bn a year just to comply with, the public spending watchdog has warned.
2. BP targeted by activist investor as Trump unshackles US oil giants | British giant struggles with tanking share price while rivals prepare for industry boom
3. Net zero threatens to kill off the beer bottle, warn brewers | Looming ‘glass tax’ will limit choice of drink on supermarket shelves, ministers told
4. Roger Bootle: Britain risks friendly fire from the US in Trump’s tariff battle with the EU | President’s looming European levies present both dangers and opportunities for Starmer
5. Matthew Lynn: Europe’s anti-Elon Musk space challenger is doomed to fail | Brussels’ state-backed bloat can’t compete with America’s ruthless free market
What happened overnight
Japan’s benchmark Nikkei 225 shed 0.1pc in early trading to 38,746.96. The Japanese government reported a record current account surplus last year of 29 trillion yen, underlining strong returns on overseas investments, boosted by a weak yen and recovering Japanese exports.
South Korea’s Kospi added 0.1pc to 2,524.85. Australia’s S&P/ASX 200 lost 0.4pc to 8,479.30.
Hong Kong shares bucked the trend and opened higher on Monday, as China’s growing clout in artificial intelligence space sparked a wave of optimism toward the nation’s tech companies.
The Japanese yen weakened more than 0.3pc to 151.93 per dollar, but remained close to the one-month high it touched on Friday on growing expectations of the Bank of Japan hiking interest rates this year.
China’s yuan hit its lowest in three weeks against the dollar, while the onshore yuan fell to 7.3082 to the dollar.
The Australian dollar fell 0.1pc to $0.62705.
07:01 AM GMT
French minister: EU must defend against Trump
France will call on the European Union to respond to Mr Trump’s latest tariffs announcement, Foreign Minister Jean-Noël Barrot said on Monday.
Mr Barrot told TF1 television that France and its European partners should not hesitate to defend their interests in the face of the tariff threats.
06:53 AM GMT
Investors turn to gold
Bullion traded near $2,879 an ounce — after advancing 2.2pc last week — as the US President’s latest trade threats helped boost demand for haven assets.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking Corp. analyst Richard Franulovich said in a note.
“An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100pc tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe haven appeal.”
06:44 AM GMT
Nippon Steel ‘considering a bold proposal’
Japan’s Nippon Steel is considering proposing a bold change in plan from its previous approach of seeking to buy US Steel, according to Chief Cabinet Secretary Yoshimasa Hayashi.
“We are aware that Nippon Steel is not looking at this as a mere acquisition, but is considering a bold proposal that is completely different from anything it has done in the past,” he said.
Mr Hayashi said it would create a win-win situation for both Japan and the US through significant investments and the production of high-quality products demanded by the US and global markets.
On Friday, Donald Trump said Nippon Steel’s $14.9 billion bid for US Steel would take the form of an investment instead of a purchase. Two people familiar with the matter told Reuters that the biggest Japanese steel-maker had not withdrawn its bid.
Nippon Steel declined to comment on that or on Mr Trump’s tariff plans.
Shares in Nippon Steel fell 1.5pc on Monday, compared with a 0.1pc decline in the Nikkei index.
06:18 AM GMT
Who sends aluminium to the US?
Roughly half all aluminium used in the US is imported, with the vast majority coming from its neighbour Canada.
The next largest sources of imports are the United Arab Emirates and China.
The US aluminium smelting industry is small by global standards, with total smelter capacity in the country at just 1.73pc of the global total according to the US geological survey.
06:02 AM GMT
Taiwan energy giant reacts
Taiwanese state-owned energy giant CPC Corporation “is willing” to increase natural gas imports from the US, Taiwan said Monday, after Mr Trump threatened tariffs on the island’s semiconductor chips.
Taiwan imports nearly all of its energy supply, with official data showing about 38 pc of its natural gas comes from Australia, 25 pc from Qatar and just under 10 pc from the US.
“CPC Corporation, considering factors such as shorter shipping routes and dispersed transport routes, is indeed very interested in Alaskan natural gas,” Taiwan’s Ministry of Economic Affairs said in a statement.
“The company will continue assessing the feasibility and is willing to increase purchases.”
The statement came after Mr Trump warned of tariffs on overseas-made chips as part of an attempt to drive companies to shift manufacturing to the US.
Taiwan is a global power in the manufacturing of chips, which are used in products from Apple’s iPhones to Nvidia’s artificial intelligence hardware and are a key driver of its economy.
Mr Trump, who has accused Taiwan of stealing the US chip industry, recently threatened to impose up to a 100 percent tax on imported semiconductors from the island.
06:00 AM GMT
Albanese: Tariffs only tax the purchaser
Anthony Albanese said Australian companies have “significant” investments in US steel industry “creating thousands of jobs in both the US and in Australia”.
An exemption would be in the interest of the Australian and American people, he said.
“We regard this as also being in the US national interest as well, because tariffs of course don’t tax us, they tax the purchasers of our products,” Mr Albanese said.
He said Canberra would “navigate any differences” with Mr Trump “diplomatically”.
05:57 AM GMT
Who imports steel to the US?
The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to data from the US government and the American Iron and Steel Institute.
Australian processed steel was purchased by the largest US military shipbuilder as AUKUS partners Australia, Britain and the US seek to integrate defence supply chains, the Australian government said last year.
Australia exported 223,000 tonnes of steel to the US last year and 83,000 tonnes of aluminium, according to the ABC.
05:52 AM GMT
Albanese to call Trump
Anthony Albanese, the Australian Prime Minister, has scheduled urgent discussions with Donald Trump.
Mr Albanese told Parliament in Canberra on Monday his government would continue to make the case for an exemption to planned tariffs.
“I have a discussion with President Trump scheduled and I will certainly keep the House and the Australian people informed,” he said.
“The Australian people know I will always stand up for them and I will always stand up for Australia’s national interest.”
05:49 AM GMT
BlueScope Steel shares rise
Shares in Australian-listed BlueScope Steel rose nearly 2pc on expectations its US business would gain from the tariffs.
It operates the North Star Mill in Ohio and employs around 4,000 people in the US.
BlueScope is Australia’s largest steel manufacturer.
05:45 AM GMT
Australia: ‘Our exports create good paying American jobs’
Don Farrell, Canberra’s trade minister, said Australian steel and aluminium exports to the US create “good paying American jobs” and are key to shared defence interests.
Mr Farrell said Australia, a key security ally for Washington in the Indo-Pacific, was making the case for “free and fair trade, including access into the US market for Australian steel and aluminium” in meetings with the Trump administration.
“Australian steel and aluminium is creating thousands of good paying American jobs, and are key for our shared defence interests,” he said in a statement.
Mr Farrell is yet to meet with his US counterpart who has not been confirmed in the role, but Australian officials have been making representations on aluminium and steel exports for several months, seeking to secure a similar exemption from tariffs it won during the previous Trump presidency in 2018.
05:40 AM GMT
Pictured: Trump on board Air Force One on Sunday
05:27 AM GMT
Good morning
President Donald Trump said on Sunday he will introduce new 25pc tariffs on all steel and aluminium imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul.
Follow this live blog for the latest updates on how countries and markets react to the news.