Tue, 01 Apr 2025

Tue, 01 Apr 2025 UK will take calm approach to US tariffs, PM says

Keir Starmer says he is "keeping all options on the table" to respond to new US trade tariffs.

* The UK government will take a measured approach to responding to US trade tariffs, rather than reacting impulsively.
* Prime Minister (name not specified) acknowledges that the UK will be affected by President Trump's expected announcement on Wednesday, which could impose significant taxes on imported goods.
* Talks between the UK and US on an economic deal to avoid tariffs are at an advanced stage, but a timescale for an exemption has not been agreed upon.
* Chancellor Rachel Reeves warns that global tariffs will have an impact on the UK as an open trading economy, but securing a deal could mitigate some of those effects.
* Trade Secretary Jonathan Reynolds claims the UK is in a strong position to reverse the tariffs and strengthen its relationship with the US.
* Conservative leader Kemi Badenoch advocates for getting a trade deal with the US "as soon as possible" rather than engaging in a "tit-for-tat" approach that could increase bills for British consumers.
* Government sources believe talks have made good progress, but are at risk of being derailed by President Trump's public comments.
* A proposed economic deal would cover technology, trade in goods and services, and agriculture, with one senior source saying an agreement is "pretty much there" but awaiting the president's sign-off.
* The chancellor suggests changing taxes on big tech firms as part of a deal to avoid US tariffs.
* Economists warn that tariffs could wipe billions off economic growth and all but eliminate the government's buffer against spending and borrowing rules.
* The UK pharmaceuticals industry is "worried" about US tariffs, with exports worth £6.6bn in 2024 at risk.
* The Scotch whisky industry also bracing for tariffs, which could put small brands like Nc'nean Distillery off investing in the US market.
* Tariffs of 20% on NI goods entering the US could cost local businesses at least £100m in lost sales.
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