Downing Street has insisted “nothing is off the table” when it comes to the UK’s response to Donald Trump’s renewed threats of increased global tariffs amid speculation over whether Sir Keir Starmer will retaliate.
The US president has threatened to impose 15 per cent global tariffs in the wake of his defeat in the US Supreme Court, bringing the UK’s preferential tariff deal with the US into question.
Downing Street has insisted discussions between the UK and US are “happening at all levels”, but did not rule out reciprocal action if the increased levy came into place.
Asked about what steps the government planned to take in response to the US president, the prime minister’s official spokesman said: “Our approach to the US has always been pragmatic. We continue to have productive conversations with them… and those discussions are happening at all levels, but nothing is off the table at this stage.
“Industry doesn’t want to see a trade war where both sides keep escalating the situation, and that’s why our focus is on constructive engagement with our US counterparts to retain the UK’s competitive advantage.”
The US president’s previous tariffs were imposed on most of the world last April under an emergency powers law.
The UK previously received the lowest tariff rate of 10 per cent, and a subsequent deal struck by the prime minister and Mr Trump saw further carve-outs for Britain’s steel industry and car manufacturers.
However, questions over whether these deals still stand have been raised after the US president vowed to replace 10 per cent levies axed by the Supreme Court with an increased 15 per cent rate.
Officials are understood to believe the changes will not have an impact on most of Britain’s trade with America, but the Prime Minister’s spokesman was unable to give a timetable for when the Government might get clarity on how the tariffs could apply to British goods and services.
Business Secretary Peter Kyle spoke to his US counterpart Jamieson Greer over the weekend and “underlined his concerns about further uncertainty for business and reinforced the need to honour the UK-US deal,” the spokesman also said.
The spokesman added: “UK teams across Whitehall and in Washington are also continuing to engage with the US administration at all levels. Those discussions will continue this week. Our priority throughout is to secure the best possible outcome for British businesses.
“As you’d expect, discussions are still ongoing, and it is an evolving situation. So we won’t provide a running commentary on the discussions beyond what I’ve just set out, but whilst we understand the uncertainty this creates, businesses and the British public can be assured that we’re focused on protecting them and the national interest.”
On Sunday, Bridget Phillipson said the government would “hope and expect” its preferential tariff deal, but refused to rule out imposing retaliatory tariffs.
Asked whether UK plans to retaliate over Mr Trump’s latest tariff threat, Ms Phillipson told Sky News: “We always stand up for what’s right for Britain. And I think the prime minister demonstrated that with the approach he took around Greenland.
“But the reality is that if you want to get things done, it’s better to do that behind the scenes.”
