A baseline 10% tariff on most UK goods heading for the United States is likely “here to stay”, Peter Mandelson has said.
The UK’s ambassador to the US also said Donald Trump should expect a “warm reception” when he visits Britain for his unprecedented second state visit later this year.
Lord Mandelson spoke to the Sunday Times as confusion remains over whether UK steel imports will continue to face 25% tariffs from the US, or could even see them rise to 50%.
The trade deal struck by Britain and America has reduced levies on car and aerospace imports.
But when it was signed, Sir Keir Starmer and Mr Trump suggested more negotiations were needed to reduce steel tariffs.
A baseline tariff of 10% remains in place for most other imports.
Lord Mandelson told the Sunday Times: “I think the 10% universal tariff is here to stay.
“But there is plenty of scope in different sectors,” he added, with the newspaper reporting the ambassador is pushing for a technology deal.
Eliminating US tariffs could be crucial for the future of the UK steel sector, which has faced turmoil over the last year.
During the continued negotiations, the Trump administration is said to be concerned about steel products that may have had a prior history in other countries before they are sent to the UK to be “finished”.
Mr Trump’s July 9 deadline for when he said he would start implementing tariffs on trade partners has been and gone, and he has begun to write to countries to inform them of new levies they will face.
On Saturday, he told the EU and Mexico they would face a 30% tariff rate from August 1.
Elsewhere, media reports have suggested that Mr Trump’s planned second state visit to the UK will take place in September.
The visit is likely to be during the political party conference season, so Parliament will not be sitting and Mr Trump will not get the opportunity to make an address to MPs and peers.
Emmanuel Macron was afforded the opportunity to address parliamentarians during his state visit last week.
But media reports have suggested the Government is wary of protests or a boycott of the address by MPs critical of Mr Trump.
“He should expect a warm reception because he really does love Britain. He hugely admires it,” Lord Mandelson told the Sunday Times of the second state visit.
He added: “He trusts Keir Starmer. It’s not a question of expressing our gratitude. My lodestar here is to demonstrate respect, not sycophancy. I don’t think the administration has any problem with that.”
Lord Mandelson also appeared to confirm reports that the visit will take place when Parliament is not sitting.
He was asked about Labour MPs who are preparing a petition to stop Mr Trump addressing Parliament, and replied: “Well there’s a surprise.
“But I had assumed that at the time of the visit, Parliament won’t be sitting.”
