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International Trade Secretary Anne-Marie Trevelyan has warned the United States that the United Kingdom could step up retaliatory measures if punitive tariffs on British steel exports are not lifted soon.
She traveled to the United States for talks with Commerce Secretary Gina Raimondo.
On her return, Ms Trevelyan said “we had a very frank conversation”.
“I have been very clear that the pressures on us to use compensatory measures if we cannot fix the problem are getting more and more acute,” she said.
Ms Trevelyan said she had invited Ms Raimondo to London for further discussions on the matter in January. But by then, UK companies will be at a disadvantage compared to EU-based companies.
“I sincerely hope that we solve this problem with our closest ally in the United States through a positive removal” of tariffs, Trevelyan said.
She said resolving the conflict would benefit workers and businesses on both sides of the Atlantic.
The Trump-era tariffs of 25% on steel exports (and 10% on aluminum exports) were imposed when the UK was part of the European Union.
The EU and the US have now reached a deal that will see them lifted from January 1. But the tariffs on British producers remain.
When asked why further talks with the United States had not taken place before January 1, Ms Trevelyan said the United States chose to have a discussion with the EU first. because it was a bigger trading partner.
If the issue is not resolved quickly, the UK could increase existing retaliatory tariffs on products such as US whiskey and cosmetics.
It could also expand the scope of the retaliatory measures to include other items, including lobsters, electric motors and orange juice.
US President Joe Biden has so far refused to reverse the measures put in place by his predecessor.
Hopes for a post-Brexit US free trade deal faded after Mr Biden said such deals were not a priority as he focused on his national agenda.
There have been breakthroughs, however. In June, the UK and the EU reached agreements with the US to suspend tariffs for five years on subsidies given to aircraft manufacturers Airbus and Boeing.
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