Britain did not immediately retaliate to U.S. President Donald Trump's tariffs on steel and aluminium imports on Wednesday, though Prime Minister Keir Starmer said he was disappointed by the move and that all options remained on the table.
"Like everybody else, I'm disappointed to see global tariffs in relation to steel and aluminium, but we will take a pragmatic approach," Starmer told parliament.
"We are ... negotiating an economic deal which covers and will include tariffs if we succeed, but we will keep all options on the table."
The British government had argued its provision of key goods for the U.S. defence, oil and gas and construction sectors meant it should be given a carve-out.
The EU responded to the U.S. tariffs by saying it would impose counter-tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month.
A British official said on Tuesday the government would not impose retaliatory trade tariffs on the United States and focus instead on trying to secure an exemption.
The head of the British steel trade body, UK Steel, questioned whether Trump realised Britain was an "ally, not a foe".
"Our steel sector is not a threat to the U.S., but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade," Director General Gareth Stace said.
Steel UK said the U.S. was Britain's second most important export market for steel after the EU, accounting for 9% of UK steel exports by value and 7% by volume.
Business minister Jonathan Reynolds said the government was working with companies impacted by the measures and would investigate what further steps might be needed to protect UK producers.
