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Downing Street has indicated that retaliatory measures remain a possibility if the United States fails to uphold the terms of its tariff agreement with the United Kingdom, though officials emphasized that neither side desires a trade conflict. A spokesperson for the prime minister explained that most elements of the UK-US trade deal, including tariffs on vehicles, steel, and pharmaceuticals, are expected to stay intact. However, the situation is continuously developing as discussions continue between the two nations.
Recent developments in the US legal system have added complexity to the trade landscape. Last Friday, the US Supreme Court invalidated the majority of the global tariffs imposed by former President Trump, ruling that he had exceeded his authority. This ruling specifically targeted tariffs enacted under the International Emergency Economic Powers Act (IEEPA), encompassing those introduced on “Liberation Day” last year. In response, the Trump administration plans to implement a 15% tariff as a temporary measure under Section 122 of the 1974 Trade Act, with exemptions for key materials such as critical minerals, metals, and pharmaceuticals.
In contrast to this temporary 15% global tariff, the existing sector-specific tariffs — agreed upon by the UK and US in areas such as steel, aluminium, pharmaceuticals, automobiles, and aerospace — remain unaffected. This distinction arises because the legislation used to promulgate the 15% tariff differs from that applied to tariffs targeting particular sectors, providing some stability to major areas of UK-US trade. However, the proposed 15% tariff would be added on top of any pre-existing tariffs, which could disadvantage allied countries like the UK. Andy Haldane, president of the British Chamber of Commerce, remarked that if the new tariff is implemented, the UK would rank near the bottom among US trade partners, a situation he described as “perverse” because the nations normally benefiting from good deals are now the most disadvantaged.
US Trade Representative Katherine Tai addressed concerns in a CBS interview, noting that the agreements made with the EU and other partners were crafted independently of the emergency tariff litigation’s outcome. “These deals are going to be good deals. We expect to stand by them. We expect our partners to stand by them,” she affirmed. From London, the prime minister’s official spokesman stressed that the UK is taking a pragmatic approach and maintaining productive dialogue with US counterparts at multiple levels. While acknowledging that “nothing is off the table,” the spokesman reiterated the industry’s desire to avoid a trade war, emphasizing a focus on constructive engagement to preserve the UK’s competitive edge. Meanwhile, Richard Rumbelow of Make UK voiced exporter concerns about the potential for further trade disruption and the urgent need for clarity regarding how UK goods will be treated upon arrival in the US market
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