Kate Whannel and Sam Francis, political reporters, discussed the UK government’s response to President Donald Trump’s new import tariffs. The UK is considering imposing retaliatory tariffs on US products if a trade deal cannot be agreed upon. Business Secretary Jonathan Reynolds is currently consulting with UK firms to determine the impact of the 10% tariffs on UK exports to the US.
President Trump expressed satisfaction with the treatment of the UK regarding tariffs, mentioning negotiations could be considered if something exceptional is offered. The UK government has already published a list of US goods that could potentially face tariffs. Talks are ongoing with the US government to avoid or reduce tariffs, but Reynolds emphasized the UK’s readiness to take action if necessary.
The UK exported a significant amount of goods to the US last year, primarily machinery, cars, and pharmaceuticals. A worst-case scenario trade war could potentially impact UK economic growth and challenge fiscal rules set by Chancellor Rachel Reeves. Behind the scenes, a trade deal with the US is reportedly nearing completion, covering various aspects of trade beyond tariffs.
Chancellor Rachel Reeves suggested changes to taxes on big tech firms could be part of a deal to reverse US tariffs. While both the UK government and business groups aim to avoid provoking the Trump administration, the deadline for negotiations is approaching. If a deal is not reached by May 1st, pressure may increase on the UK to impose retaliatory tariffs
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