Kate Whannel
Political journalist
Sam Francis
Political journalist
Getty images
The British government establishes a list of American products which he could strike with reprisal prices after President Donald Trump announced a wave of new import taxes.
It is a hardening of the government’s position while ministers seek to finalize a trade agreement with the United States.
Affairs Secretary Jonathan Reynolds said he is consulting British companies on the probable 10% prices imposed on all British exports to the United States.
If British negotiators cannot conclude an agreement to reduce the price by 10% of May 1, the business secretary told deputies that the government would impose reprisals for American imports.
The government has published an example of a list of goods that could face future British prices.
Being on the list of pages 417 does not necessarily mean that a product will face prices, said the government.
The list is extremely wide, seeming to contain almost all potential import products, pure horses and children’s clothing with raw oils, firearms and bourbon.
Reynolds claims that talks continue with the United States government to conclude an economic agreement to avoid or reduce prices.
But he warned that the United Kingdom “reserves the right to take any measure that we deem necessary if an agreement is not obtained”.
In the event of the conclusion of an agreement with the United States, consultation with companies would be interrupted, he added.
Speaking to the House of Commons, he said that the fact that the United States had put lower prices in the United Kingdom compared to other countries “confirmed the pragmatic approach that the government has adopted.” However, he said he was “disappointed” by the increase.
Conservative shadow secretary Andrew Griffith questioned Reynolds’ approach that the government’s approach was “justified”.
“The government has not obtained special favors,” he said, noting that the United Kingdom faced the same rates as more than 125 other countries and territories, including the Congo and the Christmas islands.
He said the EU was affected by 20% prices and that the UK’s lower rate of 10% was in fact a justification for those who “were pilulative and abused” to support Brexit.
“They (work) should regret the 48 times they have voted to stay in Europe and thank us for doing Brexit.”
Liberal-democratic deputy chief Daisy Cooper, said Trump said in the United Kingdom that he would only reduce prices “if you lower your standards”.
“If the government yields to Trump’s threats, it will only encourage it to use the same intimidation tactics over and over.”
She reiterated her party’s call to an “economic coalition of volunteers” against prices.
In addition to the 10% prices, a 25% price was put on the exports of British cars, as well as steel and aluminum products.
The United Kingdom has exported nearly 60 billion pounds to the United States last year, mainly machines, cars and pharmaceuticals.
The government’s official forecastist believes that the worst trade of the worst scenario could reduce the economic growth of the United Kingdom by 1% and destroy the 9.9 billion pounds of the Chancellor of the economic drop that Rachel Reeves has given himself in the spring declaration last week.
This could mean that to comply with its own budgetary rules, it should increase taxes or make reductions in public spending.
Behind the scenes, the government says it has laid the foundations for a trade agreement with the United States.
The initiates of the United Kingdom say that an agreement is practically concluded. But no one knows if, or when, Trump will register on it.
The agreement would be broader than the rates lower than the BBC includes, by focusing on technology, but also by covering the elements of the trade in goods and services as well as agriculture-a controversial field in previous commercial discussions of the US-US-UK.
Chancellor Rachel Reeves suggested that the United Kingdom could change its taxes on large technology companies as part of an agreement to overthrow American prices.
The digital services tax, introduced in 2020, imposes a 2% levy from technological companies, including large American companies such as Amazon, report around 800 million pounds of tax sterling per year.
The government and business groups have largely supported a strategy not to cause Trump’s White House.
But a big question remains whether the universal price at 10% of President Trump is even negotiating. Addressing the deputies, Reynolds suggested it, but the White House officials told the BBC that the price was linked to a wider emergency measure which could take time to relax.
For the first time, the government announced a loose deadline for negotiations – the commercial consultation on a response must end on May 1.
If no agreement is signed, then the pressure will return to Prime Minister Sir Keir Starmer to retaliate with reprisals.
