UK Government to consider retaliation over Trump tariffs

The UK Government is to explore possible retaliatory tariffs against the US.

Business secretary Jonathan Reynolds announced the UK is considering the action but emphasised that a trade deal is “not just possible, but favourable” for both countries.

He was speaking on Thursday morning in the wake of Donald Trump’s “Liberation Day” tariffs.

On Wednesday night, the US President slapped a 10% tariff on US imports of UK goods after the government failed to secure a deal.

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The US president said his “liberation day” announcement was a “declaration of economic independence”.

Reynolds said on Thursday that the UK Government has been engaged in intense discussions about a US-UK economic deal ever since Trump took office in January.

“I can confirm that those talks are ongoing and will remain so,” Reynolds said.

“It is this government’s view that a deal is not just possible but favourable to both countries, and that this course of action serves Britain’s interests.”

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Scotland exports about £4bn worth of goods to the US every year.

Reynolds cautioned members to “keep calm and remain clear-eyed” on what is in the national interest.

“British people expect to keep country secure at home and abroad. An unnecessary escalation of a trade war would serve neither purpose,” he said.

Although Reynolds insisted that the best route is for the UK to strike a negotiated trade deal with the US, he said the Government “reserves the right to take any action deemed necessary” if a deal cannot be secured.

That’s why, Reynolds said, the Government is launching a consultation on the impact of possible retaliatory tariffs.

“This is a necessary step to keep all options on the table,” he said.

If the UK is in a position to agree a deal to lift tariffs on British industry, Reynolds said the consultation will be paused and any measures coming from it would be lifted.

Although Reynolds said the UK is “progressing a deal” to lift Trump’s latest tariffs, he said the government is also “laying the foundations quickly” should the deal fall through.