No 10 Says ‘Nothing Off the Table’ Over New US Tariffs as UK Could Be Among Worst Hit
The UK government has made it clear that in response to new US tariffs, nothing is off the table. As the UK braces for potential repercussions, officials emphasize the need for dialogue and cooperation to avoid a trade war.
– Recent developments include US President Donald Trump announcing a 15% tariff on imports from all countries, effective as of Tuesday.
– A spokesperson for the prime minister stated that while the majority of the existing UK-US trade agreement—covering tariffs on sectors such as cars, steel, and pharmaceuticals—is expected to remain intact, the situation is dynamic and ongoing discussions are critical.
UK Stands Firm on Trade Relations Amid Uncertainty
– The EU responded to the tariff announcement by placing its US trade deal on hold, with Trump warning that nations that play games will face even higher tariffs.
– Last Friday, the US Supreme Court ruled against many of Trump’s previously announced global tariffs, declaring that the president had exceeded his authority.
– In light of this ruling, Trump proposed a new 10% global tariff, which was later revised upward to 15%.
UK Business and Trade Secretary Peter Kyle has raised his concerns directly with US Trade Representative Jamieson Greer, emphasizing his commitment to protecting British businesses and reiterating that all options are on the table.
The Impact of the 15% Global Tariff on the UK
– The new 15% tariff will be enacted temporarily under Section 122 of the 1974 Trade Act. Notably, some products—such as critical minerals, metals, and pharmaceuticals—will be exempt.
– Research from the think tank Global Trade Alert (GTA) indicates that the UK is likely to be one of the hardest-hit countries if this tariff is fully implemented, especially given its previously negotiated 10% tariff deal with the US.
– Conversely, countries like China and Brazil, which are already subject to higher tariff rates, may fare better under the new arrangement.
Importantly, the 15% global levy will not affect the specific tariffs already agreed upon for sectors like steel, aluminum, and aerospace. Only products outside those agreements will face this new rate, as the Section 122 mechanism differs significantly from standard tariff introductions.
Concerns and Calls for Clarity
Andy Haldane, president of the British Chamber of Commerce, noted that if the 15% tariff is enacted, the UK would sit towards the bottom of the league table of trade partners. He expressed disappointment that ally nations, which had secured favorable trade deals, may now face the most significant disadvantages.
US Trade Representative Greer assured that existing deals remain robust, stating, These deals are going to be good deals. We expect to stand by them. We expect our partners to stand by them. Despite his assurances, the EU Parliament has decided to place its agreement with the US on hold until further notice, stressing the need for clarity and legal certainty moving forward.
A Call for Constructive Engagement
The UK’s official stance reflects a pragmatic approach to negotiations. The spokesperson affirmed ongoing productive discussions with US counterparts, emphasizing that nothing is off the table at this stage. There is strong opposition from industry experts, who warn of the dangers posed by escalating trade tensions.
Richard Rumbelow, director of international business at Make UK, expressed alarm over potential trade disruptions, noting, Clarity is now urgently required on how UK exports will be treated on arrival into the United States.
Conclusion
As the UK navigates the uncertainties stemming from the new 15% US tariff, the government’s focus remains on constructive engagement rather than confrontation. While the potential impacts of these tariffs loom large, both sides are urged to prioritize dialogue to safeguard their respective economies and trade relationships. The landscape remains volatile, and the forthcoming months will be crucial as the UK adapts to these challenges on the global trade front.