The UK will not retaliate immediately to the renewal of steel and aluminium tariffs by the US, the BBC understands.
Many in the industry are calling on Britain to join the EU and Canada who have said they will hit back against the policy announced by US President Donald Trump on Monday.
The tariffs, set to apply from 12 March, would mean any steel or aluminium coming into the US would be subject to an import tax worth 25% of its value.
“Cool heads” were necessary to avoid escalating trade tensions with the Trump administration, UK government sources said, adding that retaliatory tariffs may not be in the best interest of the industry.