Trade Secretary Issues Statement on US Tariffs
The Business and Trade Secretary’s statement to Parliament on the imposition of US tariffs.
With your permission Madam Deputy Speaker, I would like to make a statement on the United Kingdom’s economic relationship with the United States.
The UK has a strong and balanced trading relationship with the US worth £315 billion which supports 2.5 million jobs across both countries. This is second only to the EU where our trading relationship is worth £791 billion.
Yesterday evening, the United States announced a 10% reciprocal tariff on UK exports and have today imposed a 25% global tariff on cars. This follows the application of tariffs of 25% on US imports of steel, aluminium and derivative products that was announced on 12 March.
No country was able to secure an exemption from these announcements, but the UK did receive the lowest reciprocal tariff rate globally. And though this vindicates the pragmatic approach this Government has taken, we know that while these tariffs are still being levied, the job is far from done.
We are, of course, disappointed by the increase in tariffs on the UK, and on other countries around the world. The impact will be felt amongst all trading nations. But I would like to update the House on how the UK can navigate these turbulent times, acting in our national interest and for the benefit of all our industries.
I would also like to take this opportunity to thank my American counterparts, Secretary of Commerce Howard Lutnick, US Trade Representative Jamieson Greer and Special Envoy Mark Burnett for their engagement over the last few months. While any imposition of tariffs is deeply regrettable, from the beginning, they promised to make themselves available and have been true to their word, and I look forward to our continued engagement over the days ahead.
As Members will know, since the new US administration took office, my colleagues and I have been engaged in intensive discussions on an economic deal between the US and the UK. One that would not just avoid the imposition of significant tariffs but that would deepen our economic relationship. On everything from defence, economic security, financial services, machinery, tech and regulation there are clear synergies between the US and UK markets. And this is reflected in the fair and balanced trading relationship that already exists between our two countries.
I can confirm to the House that those talks are ongoing and will remain so. It is this Government’s view that a deal is not just possible, it is favourable to both countries. And that this course of action serves Britain’s interests as an open-facing trading nation. I have been in contact with many businesses, across a broad range of sectors including those most affected, who have very much welcomed this approach. It is clear to me that industry themselves want to grasp the opportunity a deal can offer and they welcome this government’s cool-headed approach.
Madam Deputy Speaker, in increasingly insecure times – I have heard some Members cling to the security of simple answers and loud voices. I understand the compulsion, but I caution members of this House to keep calm and remain clear eyed on what is in our national interest not to simply proclaim that we follow the actions of other countries.
The British people rightly expect this Government to keep our country secure at home and strong abroad. An unnecessary, escalating trade war would serve neither purpose.
True strength comes in making the right choices at the right time. And thanks to the actions of our Prime Minister, who has restored Britain’s place on the world stage, the UK is in a unique position to do a deal where we can – and respond when we must.
It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths. However, we do reserve the right to take any action we deem necessary if a deal is not secured.
To enable the UK to have every option open to us in the future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step, necessary for us to keep all options on the table. We will seek the views of UK stakeholders over four weeks until 1st May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say, and influence the design of any possible UK response.
If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from that, will be lifted.
https://www.gov.uk/government/speeches/statement-by-the-trade-secretary-on-us-tariffs