Donald Trump has imposed a 25% import tax on steel and aluminium industries on countries around the world – including the UK.

But the British government is not expected to respond immediately to the tariffs – taxes charged on goods imported from other countries – with a retaliatory tax, even as the EU has confirmed its own taxes on US goods will begin on April 1.

UK trade minister Jonathan Reynolds said he was disappointed, but noted “all options were on the table” to respond in the national interest.

Secretary to the Treasury James Murray also told Times Radio this morning the government wants to be “pragmatic” and “cool-headed” in its response, and will work with the US to come up with a solution.

The government estimates around 5% of UK steel exports and 6% of aluminium go to the US, although the aluminium industry says it actually accounts for 10% – meaning there is now tariffs on £225m worth of trade.

The US president’s move, which kicked in at 4am GMT, midnight at US time, came after prime minister Keir Starmer’s failed attempt to get British industries excused from the trade war.

During the PM’s visit to the White House two weeks ago, Trump said Starmer “tried” to persuade him, and “he was working hard, he earned whatever the hell they pay him over there”.

But Trump also hinted the UK could be exempt at the time, saying: “I think there’s a very good chance that in the case of these two great friendly countries, we could very well end up with a real trade deal, where the tariffs wouldn’t be necessary. We will see.”

Trump’s decision is another attempt to put America first by boosting US steel and aluminimum production, but there are fears it will only raise prices in the US, damage economic growth and escalate tensions with key trading partners.

The EU’s counter tariffs will hit 26 billion euros (£21.9bn) worth of US goods, although European Commission president Ursula von der Leyen said they “deeply regret this measure”.

“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy,” she said.

Australia branded the decision “entirely unjustified” while Canada, one of the US’s closest trading partners, said they would retaliate but without escalating tensions.

Research company Oxford Economics said it had lowered US growth forecast for the year from 2.4% to 2%, although they still predicted it would outperform other major advanced economies over the next couple of years.

The American Iron and Steel Institute, representing US steelmakers, said the tax would create jobs and boost the domestic industry.

The group’s president Kevin Dempsey said: “AISI applauds the president’s actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices.”

But the director general of trade association UK Steel, Gareth Stace, said the move was “hugely disappointing”.

He said: “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.”

Unite union has called on the government to act, with its general secretary Sharon Graham saying: “This is a matter of national security. Steel should be immediately designated as critical national infrastructure to properly protect it.”