London, United Kingdom – The UK government is preparing to retaliate against the United States with import taxes on a range of products as tensions rise following President Donald Trump’s announcement of new tariffs. Business Secretary Jonathan Reynolds is in talks with UK firms to assess the potential impact of the 10% tariffs imposed on almost all UK exports to the US, determining which US products should be targeted in response.
If an agreement is not reached to lower the 10% tariff by May 1st, the UK government is considering imposing retaliatory tariffs on US imports. A sample list of goods that may face future UK tariffs has already been published, covering 27% of imports from the US. This list includes items such as pure bred horses, children’s clothing, crude oil, firearms, and bourbon whiskey.
While negotiations with the US government are ongoing to avoid or reduce tariffs, Reynolds emphasized that the UK reserves the right to take necessary actions if a deal is not secured. The UK exported nearly £60 billion worth of goods to the US last year, with machinery, cars, and pharmaceuticals being the main products.
Despite facing tariffs of 10%, the UK’s rate is lower than the 20% tariffs imposed on the EU. Conservative shadow business secretary Andrew Griffith argued that the UK was not receiving any special treatment and was facing similar tariffs to other countries. The potential trade war with the US could have significant economic consequences for the UK, possibly reducing economic growth by 1%.
In an effort to secure a trade deal with the US, Chancellor Rachel Reeves has suggested changes to taxes on big tech firms could be part of the agreement. The government and business groups have been cautious not to provoke the Trump administration, but pressure is mounting as the negotiation deadline approaches on May 1st.
As discussions continue, the outcome of the trade talks remains uncertain. While insiders suggest that a deal with the US is close, the timeline for finalizing an agreement is unclear. With potential repercussions on both sides, the UK faces tough decisions on how to navigate the escalating trade dispute with the United States.