- The Business and Trade Secretary addresses Parliament regarding the recent US tariffs.
LONDON, England – The United Kingdom maintains a robust trading partnership with the United States, valued at £315 billion, which supports 2.5 million jobs across both nations. This connection ranks second only to the EU, where trade totals £791 billion.
Recently, the United States implemented a 10 percent reciprocal tariff on UK exports and a 25 percent global tariff on cars. This follows a 25 percent tariff levied on US imports of steel, aluminum, and related products since 12 March.
Although no country gained exemption from these tariffs, the UK benefits from the lowest reciprocal tariff rate globally. This acknowledgment reflects the pragmatic stance taken by the government, although efforts to address these tariffs continue.
The increase in tariffs on UK exports is disappointing and will affect trade globally. However, the government is committed to navigating these challenges with the national interest in mind, benefitting all industries.
The Secretary expressed gratitude to US officials for their engagement in recent months. While the imposition of tariffs is regrettable, ongoing dialogue remains crucial, and the government anticipates further collaboration.
Since the new US administration took office, intensive discussions on a potential economic deal between the UK and the US have been underway, aiming to alleviate significant tariffs while enhancing economic relations across sectors including defense, financial services, and technology.
Discussions are ongoing, with a strong belief that a mutually beneficial agreement is achievable. The government is in contact with various businesses who support this approach and recognize the opportunities an agreement could present.
In uncertain times, the importance of remaining clear about national interests is paramount. The Secretary urges caution against hasty decisions that could lead to a detrimental trade war.
The proactive stance aims to ensure that Britain remains secure at home and influential abroad. The Secretary emphasized that true strength lies in making informed, strategic decisions. The UK is positioned to negotiate effectively while maintaining necessary responses.
The government continues to champion a negotiated deal with the US to foster economic stability for the working population, while also preparing for potential retaliatory actions if needed.
Today, the government is launching a request for input regarding the implications for British businesses concerning possible retaliatory actions. This formal step aims to keep options open, inviting stakeholder feedback for four weeks until 1st May 2025 on potential products for a tariff response. Businesses will have the chance to influence any future measures.
If an economic deal with the US is reached, this feedback process will be suspended, and any resultant actions will be lifted.
Further details on this input request will be available shortly, including a preliminary list of products under consideration.
During this challenging period, the government is committed to assisting businesses, providing reliable information through dedicated resources for those impacted by these changes.
This administration was elected to restore security for working people. Amid market fluctuations, the government prioritizes actions aligned with national interests, avoiding political games at the expense of jobs.
The government aspires to achieve a deal that supports UK industries and jobs while preparing trade defenses and exploring all available options.
This approach is designed to protect the UK’s domestic industries from both direct and indirect impacts of US tariffs, respecting the international trading framework.
As global conditions evolve, British workers and businesses can rely on the government to remain steadfast. The administration will intensify efforts to strengthen the economy, pursue trade deals with partners, and collaborate closely with allies to enhance collective prosperity.
A clear path is set towards achieving economic security for workers, with processes in place to facilitate progress on the expected deal and ensure British businesses have a voice in upcoming developments. This statement is endorsed for Parliament’s consideration.
