Jonathan Reynolds will urge Donald Trump’s administration to exempt British steel from punitive tariffs as he embarks on high-stakes trade negotiations in Washington.
On Tuesday, the Business Secretary will become the first UK minister to hold direct talks with the new Trump administration, aiming to secure crucial exemptions from the US president’s global tariff regime.
Mr Reynolds is set to meet Howard Lutnick, the US Commerce Secretary, and Jamieson Greer, the US Trade Representative, to explore a broader economic deal between Britain and America—one that he hopes will include relief for the UK’s steel industry.
His visit follows Mr Trump’s recent decision to impose 25% tariffs on all steel and aluminium imports, with a promise of further “reciprocal” tariffs taking effect from 2 April. The White House has also announced plans to factor local VAT charges into its calculations for these tariffs—a move that could hit UK exports hard, given Britain’s 20% VAT rate.
A fight to protect UK industry
Mr Reynolds has pledged to raise the steel tariffs issue during his discussions with Trump officials, emphasising the importance of safeguarding British industries.
“Protecting and growing the industries that power the UK and play a key role in delivering our Plan for Change is a priority for this Government,” he said. “Today’s visit to Washington DC is the latest step in our pragmatic and positive engagement with the new administration to agree a wider economic deal in both our interests.”
Sir Keir Starmer has so far resisted calls to impose retaliatory tariffs on US goods but has not ruled out such measures. A spokesperson for the Prime Minister said: “When it comes to global tariffs, we’re assessing all options. As the Prime Minister said last week, we’re keeping all options on the table, but we’re going to take a pragmatic approach to this, and we’ll be continuing discussions.
“As many in industry have said, they do not want to see an escalating trade war. Standing up for UK business means finding a solution, not exacerbating tensions.”
Gareth Stace, director general of UK Steel, reinforced the urgency of securing exemptions, stating: “The UK is a close ally of the US, not a foe. Securing a full exemption from these tariffs must be a priority. The focus should be on working together to find solutions, not creating new barriers. That is the message we urge Jonathan Reynolds to take with him to Washington.”
Trade experts warn that achieving a deal may require significant UK concessions.
David Henig, director of the UK Trade Policy Project, said: “The real problem is that we don’t actually know what the US wants. I don’t think the Government knows exactly what the deal might be.”
US officials have hinted at demands in multiple areas, including VAT charges, Britain’s £700m digital services tax, artificial intelligence regulations, and food production standards.
Potential changes to food import rules—such as allowing chlorine-washed chicken, previously a red line for UK negotiators—would likely face fierce opposition from farmers, particularly in the wake of Chancellor Rachel Reeves’s recent inheritance tax relief reforms on agricultural land.
“Politically, it would look terrible. The Government said they wouldn’t do it, and I just don’t see how any government could,” said Mr Henig.
He suggested that the most politically viable concession might be loosening regulations on artificial intelligence, a move that could be framed as an economic growth strategy rather than a direct trade-off.
The urgency of securing a deal was underscored by fresh OECD forecasts on Monday, which downgraded the UK’s economic growth projections.
The Paris-based organisation revised its GDP growth forecast for Britain to 1.4% this year and 1.2% in 2026, down from previous estimates of 1.7% and 1.3%. The OECD cited Trump’s trade war as a factor exacerbating economic uncertainty worldwide.
As Mr Reynolds begins negotiations in Washington, the stakes are high—not just for Britain’s steel industry, but for the wider UK economy’s ability to navigate an increasingly protectionist global trade landscape.
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Jonathan Reynolds to push for UK steel tariff exemption in Washington talks