The UK government is weighing potential retaliatory measures following Donald Trump’s decision to impose a 10% tariff on British exports to the United States. The tariffs, part of sweeping global import levies announced by Trump on what he called “liberation day,” could significantly impact British industries. Business and Trade Secretary Jonathan Reynolds informed the Commons that the government will consult business stakeholders until 1 May on possible countermeasures, including tariffs on US products such as whisky, jeans, and motorcycles. While he emphasised that a trade agreement remains a priority, Reynolds affirmed that the UK would take necessary action if a fair deal is not reached.
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In response to the US tariffs, the UK has compiled an “indicative list” of American goods that may be subjected to new levies. Compared to other affected markets, the UK has been relatively less impacted—while British exports face a 10% tariff, the EU has been hit with a 20% rate, China 34%, South Korea 25%, and India 26%. However, a separate 25% tariff on all imported cars into the US is expected to deal a severe blow to the British automotive sector. UK business groups have condemned the tariffs, warning they will inflict “untold damage” on small enterprises. The British Chambers of Commerce labelled the decision a “lose-lose situation for everyone,” predicting significant disruption to global business communities.
Meanwhile, Trump’s reshaping of global trade policies appears to be having negative repercussions for the US economy. US equity index futures plummeted by over 4% after the announcement, and the dollar also experienced a sharp decline. Analysts suggest that Trump’s aggressive tariff strategy may hurt American financial markets more than those of the targeted economies. As negotiations continue, Business Secretary Jonathan Reynolds has come under pressure from opposition MPs to safeguard other UK priorities in discussions with the US.
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During a Commons debate, Liberal Democrat MP Munira Wilson urged Reynolds to ensure that child safety online remains a non-negotiable aspect of UK policy amid trade talks. She called for reassurances that the Online Safety Act would not be compromised in any deal with the US. Reynolds dismissed concerns that the US intends to weaken protections for children, insisting that discussions are strictly focused on trade-related matters such as goods, services, and professional regulations. He reiterated the importance of maintaining strong ties with the United States while advocating for British interests in ongoing negotiations.
