Tariffs are paid by companies buying from overseas, not to the overseas companies selling to them.

The importing company may choose to pass the cost on to customers directly or to absorb the cost themselves, or simply to reduce imports. Foreign exporters could also decide to cut their prices to protect sales.

Trump introduced similar steel and aluminium tariffs in 2018 during his first term, but many countries, including the UK, were later able to work out exemptions.

The US accounts for about 10% of the UK steel industry’s exports, but for some suppliers of speciality products it is much more important than that, making up a large proportion of their overall business.

Chancellor Rachel Reeves told Matt Forde’s The Political Party podcast on Monday that she “strongly believe[s] that a deal can be done” on tariffs.

Asked if the UK would introduce tariffs in response, she said: “I don’t believe in tariffs. I don’t want to see more tariffs.”

And UK ambassador to the US Lord Mandelson has said the UK must “respect and understand” Trump.

Trade body UK Steel said on Monday that any US tariffs would be a “devastating blow” to the UK industry.

“President Trump has taken a sledgehammer to free trade with huge ramifications for the steel sector in the UK and across the world,” the group added.

Unite, the union representing UK steel workers, said Trump’s announcement “should be a wake-up call for this government”, calling on it to buy more UK steel in response.