UK takes first step towards possible retaliation against US tariffs

The UK has launched a formal process to retaliate against Donald Trump’s tariffs if it does not secure a trade deal with the US, the business secretary has said. Jonathan Reynolds told the Commons he was taking the first step towards retaliatory action against the US so as “to keep all options on the table”. The trade department published a 417-page list of US products on which it could impose tariffs, including meat, fish and dairy products, whiskey and rum, clothing, motorcycles and musical instruments. The tariffs, if implemented, could hit familiar brands such as Jack Daniel’s whiskey and Harley Davidson motorbikes. It is the first time the UK government has explicitly threatened to retaliate, and follows Trump’s announcement that he will introduce a blanket 10% import tax on British goods and 25% on cars. Reynolds said ministers were still pursuing an economic deal with the US as the priority but “we do reserve the right to take any action we deem necessary if a deal is not secured”. Officials will consult businesses on possible retaliatory measures over the next four weeks, until 1 May. “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,” Reynolds said. “This is a formal step, necessary for us to keep all options on the table. “This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.” The measure will be withdrawn if a deal with the US is struck. “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 told MPs. Ministers are hopeful about the prospect of striking a speedy economic deal that would lift the US tariffs on the UK. Downing Street said negotiations with the US over an economic deal were at an “advanced stage”. “Our focus is to negotiate this economic deal with the US, but not taking any options off the table, and we’ll continue to respond in a way that serves UK interests,” the prime minister’s spokesperson said. On Wednesday night, Trump unveiled sweeping US import taxes on countries worldwide, in a move that experts say will change the global economic landscape. UK ministers have taken heart from the fact that 10% is the lowest tariff that has been imposed by the US, compared with 20% for the EU. Keir Starmer convened heads of business in Downing Street on Thursday morning and told them that “clearly there will be an economic impact” from US tariffs but that ministers would respond with “cool and calm heads”. The prime minister told business officials that Trump “acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine.” He said that while the tariffs were “a challenge”, the UK was in a “better position than a lot of other countries”. Speaking to reporters at Labour’s local elections launch later on Thursday, the prime minister defended his decision not to pursue immediate retaliation against the US. “I don’t think we should jump straight into a trade war,” he said. “I think it is better if we’re able to negotiate a better outcome, and that’s what we are attempting to do.” The move to prepare retaliatory action still risks angering the Trump administration, however. The US treasury secretary, Scott Bessent, warned countries on Wednesday night not to retaliate and said that “as long as you don’t retaliate this is the high end of the number”. Asked about Bessent’s remarks, Reynolds said that while the ministers would “give ourselves the tools that we need to respond”, they were still focused on securing a deal. “Whilst we have a chance of making the relationship between the UK and US even stronger than it is, the message I get very strongly from businesses is remain at the table, don’t overreact, stick with the calm-headed approach the government has had to date and we’re going to do that,” Reynolds told Sky News. “I hope perhaps if we are successful there will be a template for other countries to resolve some of these issues.” He struck an optimistic tone and said he “absolutely” believed a deal could be done. “We have been able to progress talks on a range of areas on a timescale which to be honest has delivered in days and weeks more progress than we’ve had in years,” he told LBC. Reynolds revealed, however, that Trump’s team had raised objections to UK food safety standards, reigniting long-running tensions over the UK’s ban on US chlorine-washed chicken and hormone-treated beef. “We have a food standards regime which we’re very committed to in the UK which they have some objections to. So they put a number of factors into this,” Reynolds told BBC Breakfast.