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A British Treasury minister has denied claims by Donald Trump that Sir Keir Starmer was “very happy” to see a ten per cent tariff slapped on UK exports to the US.
James Murray stated: “We are disappointed that global tariffs have been introduced. We know that they will have an impact on Britain and around the world.”
Trump instructed reporters on Air Power One he thought the UK prime minister was “very happy about how we treated them with tariffs”.
The UK was hit with the lowest baseline tariff, together with many different international locations. The ten per cent tariff was half the 20 per cent fee utilized to the EU.
Nonetheless, Starmer’s allies say the prime minister is aware of the harm the US tariffs will inflict on the UK and the hazards that an escalating world commerce warfare pose to the British financial system.
Murray stated Britain’s precedence now was to barter a commerce cope with Trump “at pace”. He instructed the BBC: “We want to see the additional tariffs removed.”
Nonetheless, British officers admit that it will likely be powerful to influence the Trump administration to chop the baseline tariff beneath 10 per cent, though talks on a deal are persevering with.
A key purpose for British ministers is to chop the 25 per cent world tariff utilized by the US to automobile exports — the automotive sector is without doubt one of the most immediately uncovered elements of the UK financial system to the Trump tariffs.
“That is a particular concern to me,” enterprise and commerce secretary Jonathan Reynolds instructed MPs on Thursday. The IPPR think-tank estimated that 25,000 direct jobs within the automobile trade might be in danger, with staff at Jaguar Land Rover and Mini seen as most weak.
Whereas the UK’s automobile trade primarily exports to Europe, the US accounts for one in six fashions shipped overseas and is the most important marketplace for high-end producers reminiscent of JLR, Bentley and McLaren.
Reynolds has began a 4 week session with British enterprise on attainable retaliatory measures towards the Trump tariffs, together with focused measures towards chosen merchandise. Nonetheless, Reynolds has made it clear that enterprise doesn’t need an escalation of a commerce warfare.
Murray stated on Friday: “Our response is to carry on with a cool head and a pragmatic approach to negotiate at pace a better deal.”
British negotiators, together with Britain’s US ambassador Lord Peter Mandelson, are scrapping or scaling again Britain’s digital companies tax, which primarily impacts US tech corporations, together with different concessions, reminiscent of reducing tariffs on sure meat and seafood merchandise.
The UK can be attempting to safe a tech partnership with the US as a part of a broader financial deal, together with regulatory adjustments to facilitate transatlantic co-operation.
Reynolds has dismissed recommendations that American criticisms of free speech in Britain are a part of commerce negotiations and rejected the concept the UK would water down its on-line security legal guidelines to appease US tech corporations.
“The talks I have had with my US counterparts are to do with goods, services, the regulation of professional bodies and all the things we would associate with normal trade talks,” Reynolds instructed MPs on Thursday.
“The United States is not seeking to make our children unsafe or more vulnerable. That is not the right approach to take to our key and core ally.”
