The business secretary has said the government “will not hesitate to act” and that “nothing is off the table” after Donald Trump hit the UK with tariffs of 10 per cent on exports to the US last night as he initiated a global trade war that risks abolishing billions off economic growth.
The US president accused other nations of “looting, pillaging, raping and plundering” the US, adding allies were “worse than foes” in many cases. He also announced a 20 per cent tariff on the EU and 34 per cent on China amongst dozens of other countries.
Business secretary Jonathan Reynolds has responded to the announcement saying the government “have a range of tools at our disposal and we will not hesitate to act”.
A Downing Street source added: “We don’t want any tariffs at all, but a lower levy than others vindicates our approach. It matters because the difference between 10% and 20% is thousands of jobs. We will keep negotiating, keep cool and keep calm. We want to negotiate a sustainable trade deal, and of course to get tariffs lowered.
Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.
“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
Keir Starmer hosted a roundtable this morning with business leaders in an attempt to reassure affected industries.
At a press conference in the White House rose garden, Trump said: “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike … our country and its taxpayers have been ripped off for more than 50 years, but it is not going to happen any more.
“This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence. For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense, but now it’s our turn to prosper.”
“This will be, indeed, the golden age of America. It’s coming back, and we’re going to come back very strongly,” he added.
The president also confirmed that all foreign cars sold to America will carry a 25 per cent tariff, which puts “thousands” of British jobs at risk.
Shadow trade secretary Andrew Griffith said: “President Trump is an admirer of Britain and our negotiations in government showed he wants to do a deal. Labour must swallow their pride, put Britain’s first and get back round the negotiating table to agree a fair deal to protect jobs and consumers in both the UK and the US alike.”
Meanwhile, Lib Dem leader Ed Davey has called upon the Prime Minister to bring European and Commonwealth leaders together in a coalition of the willing against Trump’s tariffs.
The Liberal Democrats have accused Trump of starting a “destructive trade war that threatens the jobs and living standards of people across the UK and around the world” and urged Sir Keir to act by bringing partners together to use “retaliatory tariffs where necessary” on top of signing new trade deals.
Davey said: “We need to end this trade war as quickly as possible – and that means standing firm with our allies against Trump’s attempts to divide and rule.
“The prime minister should bring our Commonwealth and European partners together in a coalition of the willing against Trump’s tariffs, using retaliatory tariffs where necessary and signing new trade deals with each other where possible.
“If the government gives in to Trump’s threats, it will only encourage him to use the same bullying tactics again and again.”
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