The UK will consult businesses on “possible retaliatory action’ including on US products that could face tariffs, in response to Donald Trump’s sweeping global import taxes.
Jonathan Reynolds made the announcement to MPs in the House of Commons, stating: “To enable the UK to have every option open to us in the future, 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 added: “We will seek the views of UK stakeholders over four weeks until 1st May 2025 on products that could potentially be included in any UK tariff response.
“This exercise will also give businesses the chance to have their say, and influence the design of any possible UK response.”
The business and trade secretary said: “If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from that, will be lifted.”
And he stressed: “Further information on the request for input will be published on gov.uk later today, alongside an indicative list of potential products that the Government considers most appropriate for inclusion.”
It comes after the Prime Minister spoke to business chiefs in Downing Street this morning after the raft of new tariffs on countries around the world announced by the US President at the White House last night, including confirming a 25 per cent global import change on cars.
It follows tariffs of 25 per cent being applied on worldwide imports of steel and aluminium, and derivative products, into the US last month.
Trump imposed a rate of 20 per cent on the European Union (EU), 24 per cent on Japan and 34 per cent on China, among a wide range of others, in a speech hailing America’s “declaration of economic independence”, pledging to make the US “wealthy again”.
Speaking in the Commons, Reynolds stressed the UK had a “strong and balanced trading relationship with the US” which is “worth £315bn” and “supports 2.5m jobs” in both countries.
He argued that the UK “receiv[ing] the lowest reciprocal tariff rate globally… vindicates the pragmatic approach this government has taken” but said the job was “far from done”.
The minister pledged to continue working to secure a trade deal with the US and urged MPs to “keep calm and remain clear eyed on what is in our national interest”.
He added: “The British people rightly expect this government to keep our country secure at home and strong abroad. An unnecessary, escalating trade war would serve neither purpose.”
Reynolds said ministers “stand ready to support businesses through this” including “making sure they have reliable information” via a “bespoke webpage”, and he promised “not [to] play politics with people’s jobs”.
Tories: ditch anti-business policies now
Shadow business and trade secretary Andrew Griffith urged Reynolds and the government to shelve Labour’s workers’ rights package in response.
He said: “It’ll hit businesses so hard the OBR has not even begun to assess how much it will hurt the economy.
“Now is the time, today is the day, in the national interest, the Secretary of State must walk back to his department and instruct his officials, shelve the Employment Rights Bill today.”
He added: “Put ideology aside, put the unions on hold and put the government on the side of British business.
“The cost of failure is too high, the burdens on business are too great, time is too precious, he must act and act fast.”