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Donald Trump has slapped 25% tariffs on British steel, in a fresh blow to already struggling UK producers.

The White House announced this afternoon that it was dropping the EU from the exemption on global tariffs of 25% on imported steel and 10% on aluminium.

The exemption is due to expire tomorrow.

The move is likely to spark a trade war which would be devastating to the UK’s already fragile steel manufacturing industry.

It comes as new figures reveal some 34,000 people are employed manufacturing steel in the UK, with the highest concentrations in already deprived areas in Wales and the North of England.

US Commerce Secretary Wilbur Ross said: “We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved," he said.

(Image: Getty Images Europe)

Experts fear the move will deal a fresh blow to struggling UK producers, with the fragile industry still recovering thousands of job losses in 2015-16 which saw plants close.

Shadow Steel Minister Gill Furniss said: "This is a catastrophic blow to the sector and steelworkers across the country.

"A trade war is not the answer to the serious issue of global overcapacity that is affecting steel producers. Trump’s tariffs are a recipe for disaster – everybody will lose out.

"Theresa May and her Government have approached the ongoing crisis with utter complacency and have proved too feeble to stand up to Trump when it was most needed. They have let our steelworkers down.

"The Government has lots of questions to answer. It must urgently come before Parliament with a clear strategy on what action it will take support the sector and to avert a national disaster."

(Image: REX/Shutterstock) (Image: AFP)

UK Steel Director Gareth Stace said: “President Trump had already loaded the gun and today, we now know that the US Administration has unfortunately fired it and potentially started a damaging trade war”

He added: “This is a bad day for the steel sector, for international relations and for free trade”

A Government spokesperson said: “We are deeply disappointed that the US has decided to apply tariffs to steel and aluminium imports from the EU on national security grounds. The UK and other European Union countries are close allies of the US and should be permanently and fully exempted from the American measures on steel and aluminium.

“We have made clear to the US Government at the highest levels the importance of UK steel and aluminium to its businesses and defence projects. We will continue to work closely with the EU and US Administration to achieve a permanent exemption, and to ensure that UK workers are protected and safeguarded.”

The CBI's international director Ben Digby said: "The President's measures are deeply concerning for firms in the UK, for close trading partners and across supply chains.

"Overproduction can distort the global market and erode the level playing field that business depends on to stay competitive. But this is a shared challenge whose root causes should be tackled jointly by the EU and the US.

"There are no winners in a trade war, which will damage prosperity on both sides of the Atlantic. These tariffs could lead to a protectionist domino effect, damaging firms, employees and consumers in the US, UK and many other trading partners."

Mr Digby cautioned the EU against "any disproportionate escalation" in response to the US move, saying: "We must work with the US to find a way out of this current scenario that preserves our economic links and we will continue working urgently with the US administration to protect British trade, jobs and growth."

European Commission President Jean-Claude Juncker said he was "concerned" by the decision.

"The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation (WTO) rules," said Mr Juncker. "This is protectionism, pure and simple."

Mr Juncker said that the EU had engaged with the US over recent months to address the global over-capacity in the steel sector, which was hurting Europe as badly as America.

(Image: AFP)

However, he said Brussels had made clear the EU "will not negotiate under threat".

"By targeting those who are not responsible for over-capacities, the US is playing into the hands of those who are responsible for the problem," said Mr Juncker.

"The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US. We will defend the union's interests, in full compliance with international trade law."

EU trade commissioner Cecilia Malmstrom said it was "a bad day for world trade".

"We did everything to avoid this outcome," said Ms Malmstrom.

"I have argued for the EU and the US to engage in a positive transatlantic trade agenda and for the EU to be fully, permanently and unconditionally exempted from these tariffs. This is also what EU leaders have asked for.

"Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business, and certainly not between long-standing partners, friends and allies.

"Now that we have clarity, the EU's response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO, since these US measures clearly go against agreed international rules.

"We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these US restrictions."