UK ready for ‘all eventualities’ if Trump launches trade war, says Reynolds

The UK is prepared for “all eventualities” if Donald Trump slaps import tariffs connected goods from Britain, Trade Secretary Jonathan Reynolds said.

The US president-elect has already announced plans to deed China, Canada and Mexico with tariffs arsenic portion of his efforts to ace down connected amerciable migration and drugs.

But helium has indicated helium is prepared to usage tariffs acold much wide arsenic portion of his program to support American industry.

Mr Trump has suggested helium wants to summation tariffs connected goods imported from astir the satellite by 10% oregon 20%, rising to 60% connected items from China.

The UK could retaliate successful the signifier of tariffs targeted astatine symbolically important US products specified arsenic whiskey, bluish jeans and motorbikes – hitting brands similar Jack Daniel’s, Levi’s and Harley-Davidson – as Britain and the European Union did during commercialized wars successful Mr Trump’s archetypal word successful the White House.

Mr Reynolds would not beryllium drawn connected what actions helium would instrumentality but insisted the UK was prepared.

He told the Commons Business and Trade Committee: “This is the large question facing planetary trading relationships.”

The UK should beryllium an advocator for “open, transparent, escaped trading relationships astir the world”, helium said.

“Yes, it’s existent to say, if immoderate state imposed tariffs connected UK companies exporting, it would wounded our companies.

“But let’s besides retrieve that it besides hurts the consumers successful immoderate state are being asked to wage those tariffs. And there’s an inflationary pressure, there’s an interaction connected the outgo of living.”

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

Jonathan Reynolds

The Cabinet curate acknowledged that a 20% tariffs connected goods exported to the US would effect successful a “not insignificant” interaction connected UK economical growth.

Asked if the Government had options acceptable to respond to tariffs from Mr Trump, the curate said: “I wouldn’t privation to speculate, but the committee should presume that each eventualities person been prepared for.”

The options successful immoderate quality would beryllium to bash nothing, retaliate oregon negotiate.

Asked if retaliatory tariffs connected goods specified arsenic Harley-Davidson bikes were already prepared, the Trade Secretary said: “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 said the commercialized deficits with the US successful narration to different European countries did not use to the UK truthful Mr Trump mightiness not consciousness the request to enactment successful the aforesaid mode arsenic helium would with different nations.

He said: “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 acknowledged determination were “challenges” successful seeking a person trading relationship, oregon adjacent a free-trade deal, which would person knock-on impacts with different important markets for the UK successful the EU and China.

“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.”

But helium insisted helium did not spot the coming years arsenic a “binary choice” betwixt trading much intimately with the US oregon EU.