On Wednesday night, Trump unveiled sweeping US import taxes on countries worldwide, which experts say will change the global economic landscape.
The business secretary has said that the UK has launched a formal process to retaliate against Donald Trump’s tariffs if it does not secure a trade deal with the US. Jonathan Reynolds told the Commons he was taking the first step towards retaliatory action against the US to “keep all options on the table.”
UK Reacts to US
For the first time, the UK government has openly threatened to retaliate after Trump announced a blanket 10% import tax on British goods and a 25% tax on cars.
Reynolds emphasized that ministers are still focused on securing an economic deal with the US, but “We reserve the right to take any action we consider necessary if a deal is not reached “
Officials will consult businesses on possible retaliatory measures over the next four weeks until 1 May.
“To enable the UK to have every option open to us in the future, I am launching a request for input on the implications for British businesses of possible retaliatory action,” Reynolds said. “This is a formal step necessary for us to keep all options on the table.”
“This exercise will also give businesses the chance to have their say and influence the design of any possible UK action,” Reynolds added.
The measure will be withdrawn if a deal with the US is struck.
“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,” Reynolds told MPs.
Striking a Deal
Ministers hope to strike a speedy economic deal to lift US tariffs on the UK. Downing Street said negotiations with the US over an economic deal were at an “advanced stage.”
“Our focus is to negotiate this economic deal with the US, but not taking any options off the table, and we’ll continue to respond in a way that serves UK interests,” the prime minister’s spokesperson said.
The prime minister told business officials that Trump “acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine.” He said that while the tariffs were “a challenge,” the UK was in a “better position than a lot of other countries.”
The prime minister further defended his decision not to pursue immediate retaliation against the US.
“I don’t think we should jump straight into a trade war,” he explained. “I think it is better if we’re able to negotiate a better outcome, and that’s what we are attempting to do.”
Even This May Anger Trump
However, the move to prepare for retaliatory action still risks angering the Trump administration. US Treasury Secretary Scott Bessent warned countries on Wednesday night not to retaliate, stating, “As long as you don’t retaliate, this is the high end of the number. “
When asked about Bessent’s remarks, Reynolds stated that while the ministers would “Provide ourselves with the tools we need to respond,” they remained focused on securing a deal.
A Final Shot
“Whilst we have a chance of making the relationship between the UK and US even stronger than it is, the message I get very strongly from businesses is remain at the table, don’t overreact, stick with the calm-headed approach the government has had to date and we’re going to do that,” Reynolds told Sky News.
“I hope, perhaps if we are successful, there will be a template for other countries to resolve some of these issues.”
