RETALIATION against the United States over its use of import tariffs on steel is being kept open as an option.

During Commons question time Trade and Industry Secretary Patricia Hewitt said the Americans' action was completely unjustified and unlawful under the World Trade Organisation rules.

She said the Government was in regular contact with US administration to support UK companies' requests for exclusion from the tariffs.

"The administration has agreed to consider new applications that are received by May 20 and we expect decisions on those exclusion requests to be made by the July 3," she said.

The Government was ensuring any action it took was within the WTO rules and its first priority was to get exclusions for UK companies.

She had been assured that if these were granted, any extra duty paid on the products since the tariffs were introduced would be refunded.