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Sir Keir Starmer is in a race against time to secure a deal with Donald Trump’s White House to escape tariffs on steel and aluminium, and dodge further reciprocal tariffs which could come into play at the start of next month.
It comes after the White House imposed 25 per cent tariffs on steel and aluminium imports on Wednesday, signalling that last-ditch efforts to persuade Mr Trump to spare British industry from his global tariffs failed.
While the European Union responded by announcing trade counter-measures and hitting American goods with retaliatory tariffs, the prime minister resisted calls for the UK to immediately hit back.
Instead, British officials are already working at pace with their US counterparts to get an economic agreement over the line, which would exempt Britain from the 25 per cent tariffs announced by Mr Trump on Wednesday.
A minister on Thursday told MPs business secretary Jonathan Reynolds is in talks with the US and is “standing up” for British industry.
Business minister Sarah Jones said: “Of course, we will continue talking with the US, as the secretary of state has been doing, and make sure we are standing up for British industry and doing the right thing.”
It comes after the prime minister insisted “all options are on the table” when it comes to responding to Mr Trump’s tariffs, but promised to take a “pragmatic approach”.
While he said he was disappointed by the decision, he reminded MPs at PMQs that the UK is “negotiating an economic deal which covers and will include tariffs if we succeed”.
The Independent understands conversations have already started taking place between trade teams on either side of the Atlantic, with the UK government hopeful it can get a deal over the line as quickly as possible.
And next week, business secretary Jonathan Reynolds will travel to Washington for talks as part of the government’s ramped-up effort to come to an agreement.
However, well-placed sources within the Trump White House on Wednesday told The Independent that the UK can get “a quick trade deal”, but free speech issues raised by vice-president JD Vance with Sir Keir are likely to get in the way.
Mr Vance will be in charge of the US side of the talks, and The Independent has been told he will be “prioritising” free speech amid anger over people being arrested for posting on social media and proposed online safety legislation, which he sees as an assault on US tech companies.
It comes as the US president gears up to impose wider tariffs of 25 per cent on all imports from countries that charge VAT on imports from the US, including the UK – something which could be imposed as soon as 1 April.
While government sources stressed that they never put timelines on trade deals, there is pressure on negotiators to reach an agreement before the April deadline.
Meanwhile, The Times reported the date has been “World Tariff Day” in Whitehall as officials scramble to get a deal over the line and keep Sir Keir’s plan for the economy on track.
In the wake of Wednesday’s tariff announcement, officials stressed the need for a “cool-headed approach”. But there is growing pressure on ministers to follow the EU’s approach and bolster the UK’s trade defences.
Gareth Stace, the director-general of trade association UK Steel, branded the Trump administration’s move “hugely disappointing” and urged the government to take “decisive action” to protect the industry.
Meanwhile, Unite general secretary Sharon Graham called for steel to be “immediately designated as critical national infrastructure to properly protect it”.
And the steelworkers’ union Community said Britain must match any measures taken in response to the tariffs by the European Union “at a minimum”.