The government has launched a call for feedback from British businesses to help shape the UK’s potential response to Donald Trump’s US tariffs announcement.
Alongside the publication of an “indicative list of goods” imported from the US that may be considered in a future UK response, the Department for Business & Trade yesterday opened a four-week request for input, asking businesses the average value of their US imports, the impact of any possible UK tariffs in return, and how they would adjust to them.
The move follows US president Trump’s unveiling of new ‘reciprocal’ tariffs on all US imports on Wednesday as part of his so-called ‘Liberation Day’, which includes a 10% levy on all UK imports – due to kick in tomorrow (5 April).
Further tariffs for about 60 other countries the US deems as the “worst offenders” – including 20% for the EU, 54% for China and 24% for Japanese goods – are set to come into effect next Wednesday (9 April) amid fears a full-blown global trade war is in the offing. It comes as China announced it would retaliate on Friday morning, with an additional 34% levy on US goods starting from 10 April.
“The best interests of British business has shaped our approach throughout as we prepare for all scenarios, which is why we are asking them for their views on how these tariffs impact their operations and day-to-day lives,” said business and trade secretary Jonathan Reynolds.
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“Our cool-headed, pragmatic approach means that talks with the US will continue to reflect our mandate to deliver economic stability, as we press the case for a trading relationship that supports businesses on both sides of the Atlantic, and reflects our Plan for Change and the best interests of the UK public.”
The longlist of potential US imports that could be subjected to UK countermeasures include livestock across a number of different categories, plus a variety of fresh and frozen meat, fish, poultry and dairy products.
An extensive list of fruit and vegetables is also on the list, including oranges, pineapples and avocados, plus coffee, wine, beer and bourbon whisky.
However, DBT stressed to businesses that the government “would not consider products in the wider public interest issues such as medical supplies and military equipment”.
The full list can be found at the DBT website, here.
“While preparing for all scenarios, this government’s priority remains strengthening its relationship with the US through an economic prosperity deal, and both countries will continue to have constructive discussions in the coming weeks to agree this,” the department said.
It comes as prime minister Keir Starmer yesterday admitted the tariffs would “have an economic impact” on the UK.
“But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head.”
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UK trade with the US was valued at £300bn last year, with no trade deficit between the two nations. The US is the UK’s second-largest export market for food and drink after the EU.
The Grocer understands the UK government is exploring potential domestic support measures for sectors significantly impacted by tariffs. Regulatory changes may be on the agenda, and businesses are encouraged to submit their input.
One senior food sector source with knowledge of negotiations told The Grocer that – having secured the minimum possible tariff of 10% – the government’s next goal was to “push for an exemption from the tariffs, and this will be prioritised in discussions with the US”.
The tariff announcement has prompted big concerns within the food sector, with the FDF cautioning the majority of UK exports came from SMEs “who will be disproportionately affected by these tariffs”.
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