has ramped up tariffs on all steel and aluminium imports to 25% in a massive blow to . The Prime Minister has previously said he would not hit back with counter tariffs if the US President introduced the levy. He discussed the issue with Mr Trump in a phone call on Monday.

It comes after encouraging signs during Sir Keir's visit to the White House in February, during which the President suggested "a real trade deal" could see the UK avoid the kind of he has been threatening on some of the US's other trading partners. The UK steel industry has voiced its concern, stating that Trump's tariffs "couldn't come at a worse time". UK Steel's director general Gareth Stace described the decision as "hugely disappointing". He added: "President Trump must surely recognise that the UK is an ally, not a foe.

"Our steel sector is not a threat to the US but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade."

He also said: "These tariffs couldn't come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What's more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs."

The US President has removed all exemptions from his 2018 tariffs on metals, as well as increasing the tariffs on aluminium from 10%. have also been imposed, with plans to also tax imports from the , Brazil and South Korea by charging "reciprocal" rates starting on April 2, reports

Mr Trump informed CEOs at the Business Roundtable on Tuesday that the tariffs were prompting companies to invest in US factories. Despite the SandP 500 stock index dropping 8% over the past month due to fears of deteriorating growth, Mr Trump remains undeterred.

He argues that higher tariff rates

The President said: "The higher it goes, the more likely it is they're going to build. The biggest win is if they move into our country and produce jobs. That's a bigger win than the tariffs themselves, but the tariffs are going to be throwing off a lot of money to this country."

Following tariff threats on Tuesday that could have Trump opted to maintain a 25% tariff after Ontario paused its consideration of an electricity surcharge affecting sales to Michigan, Minnesota and New York.

The White House has acknowledged that automotive giants Volvo, Volkswagen, and Honda are considering expanding their operations in the US. However, they face the dilemma of potentially higher prices and lower profits, which could deter them from investing in new facilities.

John Murphy, a top figure at the US Chamber of Commerce, questioned the timing for such expansions, saying: "If you're an executive in the boardroom, are you really going to tell your board it's the time to expand that assembly line?".

Meanwhile, on this side of the pond, the Prime Minister's official spokesperson has assured that the government is "engaging closely with the US and we remain prepared to defend the UK's national interest where it's right to do so".