UK is ready for 'all eventualities' should Trump impose import tariffs on goods

Trade Secretary Jonathan Reynolds did not specify what measures helium would take, but helium emphasised the UK's preparedness

Trade Secretary Jonathan Reynolds has assured that the UK is acceptable for "all eventualities" should US President-elect Donald Trump enforce import tariffs connected British goods.

Trump, who has already revealed plans to enforce tariffs connected China, Canada and Mexico arsenic portion of his crackdown connected amerciable migration and drugs, has hinted astatine a broader usage of tariffs to safeguard American industry. He has projected expanding tariffs connected planetary imports by 10% oregon 20%, with a steep emergence to 60% connected Chinese goods.

In response, the UK could enforce targeted tariffs connected symbolically important US products similar whiskey, bluish jeans and motorbikes, affecting brands specified arsenic Jack Daniel’s, Levi’s and Harley-Davidson, mirroring actions taken by Britain and the EU during commercialized wars successful Trump's archetypal term.

While Mr Reynolds did not specify what measures helium would take, helium emphasised the UK's preparedness. Speaking to the Commons Business and Trade Committee, helium said: "This is the large question facing planetary trading relationships."

He advocated for "open, transparent, escaped trading relationships astir the world", adding, "Yes, it’s existent to say, if immoderate state imposed tariffs connected UK companies exporting, it would wounded our companies."

He besides pointed retired that specified tariffs would harm consumers successful the imposing state owed to inflationary unit and accrued outgo of living.

The Cabinet curate has admitted that a 20% tariff connected UK exports to the US could person a "not insignificant" effect connected Britain's economical growth. When quizzed astir the Government's readiness for imaginable tariffs from Mr Trump, the curate stated: "I wouldn’t privation to speculate, but the committee should presume that each eventualities person been prepared for."

The options successful immoderate commercialized quality are bash nothing, retaliate, oregon negotiate. On whether retaliatory measures against iconic American products similar Harley-Davidson motorcycles were connected standby, the Trade Secretary remarked: "You would expect this section to hole for each eventuality. But I deliberation we should conscionable beryllium a small spot delicate astatine this signifier astir speculating astir however we would respond to thing which hasn’t happened."

Mr Reynolds pointed retired that the commercialized imbalances the US has with different European countries don't truly use to the UK, suggesting that Mr Trump mightiness not spot the request to instrumentality the aforesaid actions against Britain. He elaborated: "There are a full scope of areas wherever we, arsenic a country, I deliberation could and should – if we could bash it – invited person trading relationships with the US."

"The US is simply a cardinal state of ours. We person an incredibly beardown trading narration arsenic it stands, and erstwhile I look to areas similar services, technology, captious minerals, if determination was the accidental to enactment much intimately together, I don’t deliberation anyone should crook astir instantly and accidental ‘not funny successful that’."

He conceded determination were "challenges" successful pursuing a tighter commercialized enslaved oregon striking a free-trade agreement, fixed the knock-on effects for the UK's cardinal markets similar the EU and China. He elaborated: "I don’t spot the request astatine this signifier to regularisation thing retired oregon in, but to beryllium realistic astir wherever our nationalist involvement lies and being frank with the committee astir the information that immoderate dialog successful immoderate large main marketplace that we mightiness bash has to beryllium considered not successful isolation, but its narration to different cardinal markets, and what the consequences of that dialog would mean for concern and commercialized successful those areas."

However, helium was adamant that the forthcoming years shouldn't beryllium seen arsenic making a "binary choice" betwixt deepening commercialized ties with either the US oregon the EU.