Liam Fox slams Donald Trump’s ‘patently absurd’ steel tariffs amid trade war fears
2 min read
Liam Fox has hit out at Donald Trump after the US President ignored the pleas of American allies and slapped "absurd" new levies on steel imports.
In a move that Labour warned could deal a hammer blow to Britain’s fragile steel industry, the US commander-in-chief announced that he was going ahead with a 25% duty on all steel imported into America from the European Union, Canada and Mexico.
The move has sparked fears of a tit-for-tat trade war, with the EU readying a legal challenge to Mr Trump’s decision at the World Trade Organisation.
Mr Fox - the International Trade Secretary - tore into the proposals, and said the UK would not “rule out counter-measures” if the hikes came into force as planned on June 20.
The longstanding free trade advocate told Sky News: "In the case of the United Kingdom, where we send steel to the United States that is vital for their businesses and their defence industry, it is patently absurd.
"We absolutely do not rule out counter-measures. And we do not rule out taking a dispute to the World Trade Organisation at Geneva.
"Obviously, we still hope the United States will think again about this. But it would be a great pity if we ended up in a tit-for-tat trade dispute with our closest allies."
In a sign of increasing tensions, Canada on Thursday announced plans to hike tariffs on American-made steel, while the EU vowed to unveil "counter balancing measures in the coming hours".
Labour's Shadow International Trade Secretary Barry Gardiner meanwhile urged Mr Fox to move to protect the UK's steel industry, which is estimated to employ more than 30,000 workers.
He said: "These tariffs present a grave threat to our steel and aluminium industries and to thousands of UK jobs.
“President Trump is using national security as an excuse for these unjustified and protectionist tariffs. They fly in the face of WTO rules and risk a global trade war.
"Liam Fox needs to take urgent action to defend British industry from these unfair measures."
In a statement Downing Street said it was "deeply disappointed" with the US President’s decision, adding that Theresa May would confront Mr Trump on the issue at next week’s meeting of the G7 industrial nations in Canada.
A Government spokesman said: "The UK and other European Union countries are close allies of the US and should be permanently and fully exempted from the American measures on steel and aluminium."
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