MINISTERS will discuss increasing funding for British steel after the US imposed a 25 per cent import tariff, trade minister Douglas Alexander said today.

Responding to an urgent question in the Commons, he added that there was a “window of opportunity” for Britain to have a “cool and clear-headed” response before the tariffs are due to come into force on March 12.

He denied that President Trump’s announcement had come as a surprise, insisting that Britain “stands ready” to find solutions that work for both countries.

Mr Alexander noted that no tariffs on aluminium had been announced and that the president had a “speciality for generating uncertainty.”

With meetings due to be held with representatives of the steel industry and trade unions this afternoon, he added: “There’s a window of opportunity, not only to engage with the workforce and the companies to make sure we better understand exactly what they are looking for in light of these specific measures, but also to engage with the Trump administration directly.”

Labour MP Liam Byrne asked if funding through the government’s upcoming steel strategy could be increased to preserve Britain’s steel-making capability.

Mr Douglas replied: “There’s already very active dialogue related not just to potential tariffs but also to the risks of trade diversion,” and insisted the industry’s protections against cheap steel dumping run until March next year.

The minister also said government wanted to avoid a “significant escalation” with the US, adding that government was looking forward to speaking on the issues with European counterparts during Britain’s “reset” talks with the EU later this year.

Warning that British steel is a strategically important industry for national security and the economy, Labour MP Luke Myer said: “Our government must not be afraid to make the big fiscal choices to protect our own.”

Alasdair McDiarmid, assistant general secretary at the Community union, which represents many steelworkers, said: “The new tariff confirmed by Donald Trump is a huge cause for concern, and represents a retrograde step for the steel industry and economies on both sides of the Atlantic.

“There is now an even greater need for comprehensive safeguards to protect our domestic steel from cheap overseas steel imports.”

Downing Street declined to criticise the US president’s decision.

No details have yet been confirmed for Prime Minister Sir Keir Starmer’s trip to Washington, expected in coming weeks.