‘US is our closest ally’, Jonathan Reynolds says in reaction to Trump tariffs – but ‘nothing off the table’

The US is “our closest ally” however “nothing is off the desk” in response to Donald Trump’s 10% tariffs on imports from the UK, the enterprise secretary has mentioned.

In a press release following the US president’s nearly hour-long address to the world, Enterprise and Commerce Secretary Jonathan Reynolds mentioned: “We are going to all the time act in the perfect pursuits of UK companies and customers.

“That is why, all through the previous few weeks, the federal government has been absolutely centered on negotiating an financial cope with the US that strengthens our present truthful and balanced buying and selling relationship.”

Follow the latest following Trump’s tariffs announcement

Mr Reynolds reiterated the statements from the prime minister and his cupboard over the previous few days, saying the US is “our closest ally”, and the federal government’s method is to “stay calm and dedicated to doing this deal, which we hope will mitigate the affect of what has been introduced right this moment”.

However he continued: “We now have a spread of instruments at our disposal, and we won’t hesitate to behave. We are going to proceed to interact with UK companies, together with on their evaluation of the affect of any additional steps we take.

“No person desires a commerce battle, and our intention stays to safe a deal. However nothing is off the desk, and the federal government will do every little thing essential to defend the UK’s nationwide curiosity.”

‘Get again around the negotiating desk’, say Tories

The Conservative Party’s shadow enterprise and commerce secretary described the US president’s announcement as “disappointing information which is able to fear working households throughout the nation”.

Andrew Griffith hit out on the authorities for having “failed to barter with President Trump’s crew for too many months after the election, didn’t preserve our skilled high commerce negotiator, and didn’t get a deal to keep away from the imposition of those tariffs by our closest buying and selling associate”.

“The chancellor’s emergency finances of only a week in the past with its insufficient headroom is now in danger, casting uncertainty about extra taxes or spending cuts,” he continued. “Sadly, it’s British companies and staff who can pay the value for Labour’s failure.”

He referred to as on ministers to “swallow their pleasure” and “get again around the negotiating desk to agree a good deal to guard jobs and customers in each the UK and the US alike”.

Aid in Westminster – however concessions to Trump to come back

It has been fairly a rollercoaster for the federal government, the place they went from the hope that they might keep away from tariffs, that they might get that financial deal, to the realisation that was not going to occur, after which the anticipation of how onerous would the UK be hit.

In Westminster tonight, there’s precise reduction as a result of the UK goes to have a ten% baseline tariff – however that’s the least onerous of all of the tariffs we noticed President Trump announce.

He held up a chart of the worst offenders, and the UK was properly on the backside of that listing.

No 10 sources had been telling me as President Trump was within the Rose Backyard that whereas no tariffs are good, and it is not what they need, the very fact the UK has tariffs which might be decrease than others vindicates their method.

They are saying it is essential as a result of the distinction between a 20% tariff and a ten% tariff is 1000’s of jobs.

The place to subsequent? No 10 says it is going to “preserve negotiating, preserve cool and calm”, and reiterated Sir Keir Starmer’s want to “negotiate a sustainable commerce deal”.

“In fact need to get tariffs lowered. Tomorrow we are going to proceed with that work,” a supply added.

One other supply mentioned the ten% tariff reveals that “the UK is within the friendlies membership, as a lot as that’s price something”.

In a single day, folks might be number-crunching, attempting to work out what it means for the UK. There’s a 25% tariff on automobiles which might hit billions in UK exports, along with the blanket 10% tariff.

However regardless of this being decrease than many different nations, GDP will take a success, with forecasts being downgraded most likely as we communicate.

I believe the federal government’s method might be to not retaliate and attempt to velocity up that financial deal within the hope that they’ll decrease the tariffs even additional.

There might be concessions. For instance, the UK might decrease the Digital Providers Tax, which is imposed on the UK income of tech giants. Will they loosen regulation on social media corporations or agricultural merchandise?

However for now, there’s reduction the UK has not been hit as onerous as many others.

Liberal Democrat chief Sir Ed Davey has reacted furiously to Mr Trump’s announcement of a “harmful commerce battle”, and referred to as on the federal government to face up in opposition to “Trump’s makes an attempt to divide and rule”.

“The prime minister ought to convey our Commonwealth and European companions collectively in a coalition of the prepared in opposition to Trump’s tariffs, utilizing retaliatory tariffs the place vital and signing new commerce offers with one another the place attainable.”

Talking on Wednesday night at a White Home occasion entitled ‘Make America Rich Once more’, the US president unleashed sweeping tariffs throughout the globe.

Mr Trump held up a chart detailing the worst offenders – which additionally confirmed the brand new tariffs the US could be imposing.

The UK’s charge of 10% was maybe a shot throughout the bow over the 20% VAT charge, although the president’s recommended a ten% tariff imbalance between the 2 nations. Nonetheless, tariffs of 10% might immediately scale back UK GDP by between 0.01% and 0.06%, in accordance with Capital Economics.

A 25% responsibility on all automotive imports from all over the world can be being imposed from midnight within the US – 5am on Thursday, UK time.

Learn extra:

World reacts to Trump’s tariff announcement
Tariffs will have consequences for globalisation, the US economy and geopolitics
Trump’s tariffs explained

The UK authorities had been hoping to barter an financial cope with the US in a bid to keep away from the tariffs, however to no avail. The federal government says negotiations will proceed.

The Confederation of British Business mentioned “negotiating stronger buying and selling relationships with all like-minded companions might be foundational to any success”.

The enterprise secretary is anticipated to make a press release within the Home of Commons on Thursday, and we’re additionally anticipating to listen to from the prime minister.

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