“Nothing is off the table” in the UK’s response to US President Donald Trump’s threats that he will impose 15% global tariffs, Downing Street has said.
No 10 left open the possibility that the UK could impose reciprocal trade levies on American goods and services, but insisted that it was focused on “constructive engagement” with the Trump administration as a trade war would harm businesses.
The US president said on Saturday he would be imposing a 15% global tariff “effective immediately” after the Supreme Court overturned his previous import taxes policy in a ruling on Friday.
It triggered condemnation from the British Chambers of Commerce, which warned the change would mean an extra 5% increase in tariffs on a “wide range” of exports to America, except those covered under a transatlantic trade deal.
Asked on Monday 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.”
Mr Trump signed an executive order on Friday night that enabled him to bypass Congress and impose a 10% tax on imports from around the world, after his “reciprocal tariffs”, introduced under an emergency powers law in April, were struck down by the US Supreme Court.
In a post on Truth Social on Saturday, he then said he would be raising this rate to 15% following the “ridiculous, poorly written and extraordinarily anti-American decision on tariffs issued yesterday”.
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 Prime Minister’s spokesman said.
Mr Greer has indicated the US will abide by previously struck deals despite the new tariffs, according to reports.
Britain had received the lowest tariff rate of 10% and a subsequent agreement struck by Prime Minister Sir Keir Starmer and Mr Trump saw further carve-outs for the country’s steel industry and car manufacturers.
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.
The spokesman told reporters: “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.”
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