Reynolds says government launching consultation with business on possible retaliatory tariffs against US
Reynolds says he is now opening a consultation on possible retaliatory tariffs.
It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths.
However, we do reserve the right to take any action we deem necessary if a deal is not secured.
To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table.
We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response.
This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.
Reynolds stresses that retaliatory tariffs are only an option, and that the government still wants an economic deal instead.
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 says further information about the consultation will be on the gov.uk website later today.
Key events
In his response to Griffith, Reynolds accused the shadow business secretary of being “flippant”.
He said that, although Griffith said the UK was getting the same tariffs as places like the Christmas Islands, the UK has a much more complex trading relationship with the US.
And, on Brexit, he said the Tories should remember that that was “perhaps not the finest hour in terms of the state’s preparation for large trade shocks”.
Tories mock suggestion UK was getting ‘special favours’ from US
Andrew Griffith, the shadow business secretary, responded to Jonathan Reynolds. The cross-party tone adopted by the Conservatives when Kemi Badenoch was tweeting (see 11.29am) did not last long. Griffith said that Tories would “support the government where it acts in the national interest”, but mostly his speech was highly critical.
This is also a moment for honesty and telling the truth. The government, sadly got no special favours from the White House last night. The secretary of state refers to vindication. This is no vindication at all. We’re in precisely the same band as the Congo, Costa Rica, Kosovo and the Christmas islands. In fact, I count over 125 countries and territories that have the same tariff levels as the US as we now do so not that special.
Last night was a vindication of those who were pilloried and abused for wanting our country to have the freedom to decide our own trade policy. If Labour and the Liberal Democrats had their way, we’d still be in the EU. As the prime minister acknowledged, this morning, thousands of British jobs have been saved today as the result.
Reynolds says government launching consultation with business on possible retaliatory tariffs against US
Reynolds says he is now opening a consultation on possible retaliatory tariffs.
It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths.
However, we do reserve the right to take any action we deem necessary if a deal is not secured.
To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table.
We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response.
This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.
Reynolds stresses that retaliatory tariffs are only an option, and that the government still wants an economic deal instead.
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 says further information about the consultation will be on the gov.uk website later today.
Reynolds criticises MPs who want to respond to Trump with ‘simple answers and loud voices’
Reynolds says he has been engaged in talks with the US on a new economic relationship.
[A deal] would deepen our economic relationship on everything from defence, economic security, financial services, machinery, tech and regulation.
There are clear synergies between the US and UK markets, and this is reflected in the fair and balanced trading relationship that already exists between our two countries.
The talks will continue.
And a deal is not just possible, but favourable to both countries, he says.
Reynolds says some MPs have offered “simple answers”. But this is wrong, he says.
I have heard some members cling to the security of simple answers and loud voices.
I understand the compulsion, but I caution members of this house to keep calm and remain clear-eyed on what is in our national interest, not to simply proclaim that we follow the actions of other countries.
Jonathan Reynolds makes statement to MPs about Trump
Jonathan Reynolds, the business secretary, is making a statement to MPs about the Trump tariffs.
He says the UK has a strong trading relationship with the US, worth £315bn. This is second only to the relationship with the EU, which is worth £791bn.
He says the UK is subject to 10% tariffs – the lowest rate.
This is “disappointing”, he says.
But he says he will tell MPs how the UK can navigate this.
Green party says UK should respond to Trump tariffs by lining up with EU and Canada
The Green party says the UK should respond to the Trump tariffs by uniting with Canada and the EU to fight them. This is also what the Lib Dems have called for.
Carla Denyer, the Green co-leader, said:
We need to work together to oppose Trump’s divide-and-rule tactics.
In the first instance, that means standing with partners like the EU and Canada who share our commitment to trade agreements rather than trade coercion.
It’s a fantasy to believe that our long-term economic prosperity can be left in the hands of whether or not we are in Trump’s favour on any one given day.
As such, we must prioritise securing a customs union agreement with the EU so that we regain the strength of being part of a larger bloc.
Ben Quinn
Ben Quinn is a senior Guardian reporter.
Johnny Reynolds, the business secretary, has been suggesting in private to Labour MPs that the 10% tariffs imposed on the UK by Donald Trump is a relative success and is down to Britain’s courtship of the US president.
“Colleagues will be watching the news from the US tonight. Whilst it is positive the UK has received the best treatment, reflecting our engagement with the US so far, we still have work to do to secure a wider deal that delivers the best for UK business and industry,” Reynolds said in a message sent to Labour MPs.
The tone was somewhat different to the one taken by Reynolds on the morning broadcast rounds when he told the BBC’s Today programme that he was “disappointed” by Trump’s decision.
Reynolds was pulled up by the Today programme’s Nick Robinson, who pointed out that the 10% tariff was a standard tariff for the whole of the world, including the unpopulated Heard and McDonald Islands.
“You’re not claiming, are you, that this 10% tariff is a result of your negotiations, are you? You’re not saying we’re being treated better because we’ve been nicer to Donald Trump?” he asked.
Reynolds said: “We have engaged on trade issues, that has been important.”
Briefing material was due to be sent out to members of Labour’s parliamentary party, he also told Labour MPs, adding “your support as ever is appreciated.”
Lib Dems urge government to launch ‘Buy British’ campaign in response to Trump tariffs
The Liberal Democrats are urging the government to launch a ‘Buy British’ campaign (which will bring back memories of the 1970s to older readers). Daisy Cooper, the Lib Dem deputy leader and Treasury spokesperson, said:
People across the country are deeply worried about what Trump’s trade war means for their living standards, and want to know what they can do to help. We need to bring the country together, and show collectively that we won’t take Trump’s tariffs lying down.
The Government should launch a campaign to encourage people to Buy British and support our high streets, as part of a national effort to back British businesses. That must be bolstered with a raft of serious measures to unleash the potential of our businesses including overhauling business rates, scrapping the jobs tax and fixing our trading relationship with the EU.
Ministers also need to rule out making concessions to Trump that would damage our local farmers, threaten the NHS or undermine the online safety of our children. We need to send Trump a clear message that Britain will not be bullied, by rallying round our businesses at home and working with our Commonwealth and European allies abroad.
Badenoch offers to help Labour with US trade talks – and says Trump’s tariffs will make ‘all of us poorer’
Kemi Badenoch has been tweeting about President Trump’s tariffs this morning.
Rather optimistically, she is offering to help the government negotiate a trade deal with the US. She says:
Leaving the EU has left us in a stronger position on trade. We now have an independent trade policy but this only works if it is used properly by people who know what they’re doing.
The only party with any recent experience of negotiating deals is the Conservatives. We are here and ready to help in the national interest. It’s time for the Labour government to get a deep and meaningful trade deal with the US that removes these tariffs and delivers growth without compromising on standards. (2/2)
This makes the Conservative party sound non-partisan, which is often superficially appealing in Westminster politics. But, of course, it is not a genuine offer, because Badenoch knows that Keir Starmer is more likely to take negotiating tips from Larry the Downing Street cat. He told us exactly what he thought about Badenoch’s skills in this areas at PMQs yesterday. Badenoch “was the trade secretary who failed to get a trade deal with the US,” he said.
But Badenoch also criticises the Trump tariffs quite directly. She says:
If we fail to learn the lessons of history we will be doomed to repeat them.
President Trump’s tariffs will not make the US wealthier but they will make all of us poorer.
Ronald Reagan understood this because he lived through when it happened before
This is interesting because at the weekend a report (which Badenoch denied) claimed she had told her shadow ministers not to criticise Trump. This comment suggests she is comfortable being negative about the president. The overnight CCHQ response to the tariffs announcement (issued by the shadow business secretary, Andrew Griffith, who is more of a Maga enthusiast – see 9.33am), criticised Labour, but at no point suggested Trump was making a mistake.
Lisa Nandy, the culture secretary, has suggested the government will not water down UK copyright law as part of a trade deal with the US.
During culture questions in the Commons, the former Tory culture secretary John Whittingdale asked about reports that the deal could include concessions on AI regulation. He asked Nandy to assure “the creative and the news media sectors that any negotiations will not include an offer to weaken our copyright framework, which would be opposed by creative industries both in the UK and in the US”.
Nandy replied:
Our copyright framework is an essential part of their success. We’ve been clear, if it doesn’t work for creatives, then it doesn’t work for us, and we won’t do it.
The prime minister has been clear in terms of negotiations with the United States that this is the start of the process, but we will always work in the national interest and we’re considering all steps as we look to the future.
Caoimhe Archibald, Northern Ireland’s economy minister, has described the Trump tariffs as “deeply regrettable”.
Northern Ireland faces particular difficulties because of its unique, post-Brexit trading arrangements, which means that in effect it remains part of the EU’s single market.
Northern Ireland exports to the US will face 10% tariffs, like exports from other parts of the UK. But if the EU imposes retaliatory tariffs on US imports, those tariffs would have to be applied to US goods arriving in Northern Ireland.
Archibald, a Sinn Féin minister in the power-sharing executive, said:
The announcements made last night are deeply regrettable. A trade war will only fuel inflation and risk recession.
She said she had spoken already to Irish deputy premier Simon Harris and a representative of the UK government and had set out five key asks.
First, to keep the north’s unique circumstances in mind in trade negotiations and in terms of any counter-measures.
Second, to act in concert, and to minimise divergence between Britain and the EU.
Third, to provide a properly resourced advice service for businesses so that they can understand how tariffs affect them.
Fourth, to improve existing trading initiatives such as HMRC’s duty reimbursement and waiver schemes.
Finally, to bring forward an economic package that protects our international competitiveness.
Greenpeace activists have scaled a building outside the Foreign Office in protest over delays to signing an international treaty protecting oceans, PA Media reports. Four protesters unfurled a banner as they suspended themselves on columns on the King Charles Street archway in Westminster early today. The group called for faster action from David Lammy, the foreign secretary, in signing the Global Ocean Treaty, with the banner showing a turtle with the words “Lammy don’t dally!”.
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