The UK government's business secretary, Jonathan Reynolds, speaking to the BBC, has said that US tariffs on UK steel would be 'negative' for both nations, according to a report on the BBC website.

Reynolds said that the UK and the US have a mutual interest in negotiating and exemption from President Donald Trump's 25% import tax which, it is claimed, could go live next month.

According to the BBC news website report, Reynolds said the UK was 'in a different trading position to other countries and could offer very specialised steel and aluminium exports that the US needs'. He referred specifically to submarine casings made in Sheffield and argued that the proposed tariffs would raise costs for US taxpayers.

While Trump has said that his tariffs would be enforced 'without exceptions or exemptions', Reynolds, speaking on Sunday with Laura Kuenssberg, said it would be a negative move for both the UK and USA.

Reynolds spoke of constructive engagement between the US and UK, but admitted it wasn't easy.

The BBC website story quoted Reynolds as saying he appreciated that the US had its own mandate for changing their approach to trade issues, but added that the UK has a different argument and a different story to tell.

In the same article, the BBC quotes UK Steel, a trade association representing the UK steel industry, as saying that the tariffs were a "devastating blow" that would 'damage the sector's £400 million/yr contribution to UK/US trade.'

Fears were expressed that Trump's tariffs might lead to excess steel being dumped on UK shores, but there were positive noises too in the shape of yesterday's launch of the British Government's Plan for Steel, which is designed to reverse some of the long-term issues negatively affecting the UK steel industry.

Those negative issues include the loss of almost 3,000 jobs at Tata Steel following the announcement of a plan to replace Port Talbot's blast furnaces with one electric arc furnace (EAF). Another was British Steel's decision to introduce an electric arc furnace threatening 2,000 jobs at the company's Scunthorpe site.

Gareth Stace, director-general of UK Steel said he was heartened by the Government's plans for the steel industry, claiming that a robust strategy was needed to reverse sector decline.

For further information on this BBC story, click here.

Story source: BBC website.