The UK's business secretary, Jonathan Reynolds, expressed the need for excluding the UK from the tariffs threatened by Donald Trump on exports to the US. Reynolds highlighted that the US does not have a goods trade deficit with the UK, suggesting that engaging in dialogue is warranted. Trump's tariff threats, aimed at countries selling products in the US, raise concerns among world leaders due to the potential increase in costs for companies. Reynolds emphasized that in terms of manufactured goods, the US does not hold a trade deficit with the UK. He underlined the importance the US government places on this matter and the need for constructive engagement.
Trump's economic strategy heavily relies on tariffs to bolster the US economy, protect jobs, and generate tax revenues, while also leveraging them for other policy objectives. Although Trump initially announced 25% tariffs on Canada and Mexico, recent considerations for trade deals instead of tariffs have surfaced. Reynolds additionally mentioned that the UK might align with EU regulations on food and farm products to ensure seamless access to European markets.
Regarding Brexit-related issues, Labour's manifesto aimed to ease trade barriers for exporting food and farm products to the EU. Reynolds pointed out a potential agreement that could improve trade terms with the EU without compromising the UK's stance on customs unions or single markets, allowing the pursuit of global trade partnerships. As discussions continue, details on the depth of this agreement remain uncertain, with discontent from the Conservatives over any perceived concessions to the EU and calls from the Liberal Democrats for increased efforts to facilitate trade with the EU.