Government To Consult On Potential UK Retaliation To Trump's Tariffs
US president Donald Trump has announced landmark tariffs described as "disappointing" by the UK government. (Alamy)
3 min read
The government is to consult on possible retaliation to US tariffs on UK goods announced by US President Donald Trump.
Jonathan Reynolds, the Secretary of State for Business and Trade, said on Thursday that he was inviting British businesses to provide a view on how introducing tariffs on goods moving in the opposite direction, from the US to the UK, would affect them.
Trump on Wednesday said that he was imposing a 10 per cent tariff on all UK imports as part of his "liberation day" policy of new taxes on goods entering the US from across the world.
Reynolds told MPs he was "disappointed" by the US move and added that the UK would work on an "indicative list" of American products that could be subjected to retaliatory tariffs.
At the same time, the government is continuing to negotiate an economic deal with the White House with the hope of eventually removing the tariffs announced by Trump on Wednesday.
"It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths," Reynolds told MPs.
"However, we do reserve the right to take any action we deem necessary if a deal is not secured, to enable the UK to have every option open to us in the future."
He added: "I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table."
He stressed, however, that it was important to remain "calm" and "clear-eyed", and criticised the "simple answers and loud voices" coming from opposition parties.
"I understand the compulsion, but I caution members of this House to keep calm, and remain clear-eyed on what is in our national interest — not to simply proclaim that we follow the actions of other countries."
The Cabinet minister added that if an economic deal is agreed with the US that lifts the tariffs, "request for input" on any consultations on retaliatory tariffs from the UK would be "paused".
Prime Minister Keir Starmer this morning conceded there would be an "economic impact" as a result of Trump's decision.
“Decisions we take in coming days and weeks will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table, in the interests of putting money in the pockets of working people," said Starmer, who hosted a business roundtable in Downing Street.
Speaking later at the launch of Labour's local election campaign, Starmer said the US decision to impose imports from a range of countries including the UK was an "important moment" and the "beginning of a new era".
Global stocks dropped steeply on Thursday as markets responded to Trump's tariffs, with the UK's FTSE 100 share index falling by 1.5 per cent.
The UK is among almost a dozen countries that will face a lower 10 per cent base rate tariff on imports to the US, alongside countries like Singapore and Brazil.
However, other countries will face considerably higher tariffs. China faces 54 per cent tariffs on top of previous tariffs, while the European Union faces 20 per cent tariffs.
Speaking at the White House on Tuesday, Trump said his tariffs would make the US "prosper".
"And it will all happen very quickly. With today's action, we are finally going to be able to make America great again, greater than ever before.
"Jobs and factories will come roaring back into our country, and you see it happening already. We will supercharge our domestic industrial base," he said.
