Senior Labour Government discussions are continuing in response to Donald Trump’s declaration of 15 per cent tariffs on imports worldwide, with ministers seeking the most favourable outcome for British companies.
Education Secretary Bridget Phillipson conceded that firms face a period of doubt following the US President’s announcement, but maintained that the UK anticipates its advantageous trading terms with America will remain intact.
This weekend, the Labour minister said: “We, through the work that the Prime Minister has been leading in engaging with the US Government and with President Trump, we would hope and expect that to continue, but these discussions are ongoing.”
She described the situation as “evolving” and assured businesses that the Government would work to secure “the best possible deal” for them.
Donald Trump hikes global tariffs to 15% as Labour promises to secure ‘best possible deal’ with White House
The tariff announcement came after the US Supreme Court struck down President Trump’s earlier import tax policy on Friday, ruling against the “reciprocal tariffs” he had introduced under emergency powers legislation in April.
In response, the President signed an executive order on Friday evening allowing him to circumvent Congress and impose a 10 per cent levy on goods from across the globe.
However, President Trump raised this figure to 15 per cent the following day, posting on Truth Social that he was doing so because of what he termed a “ridiculous, poorly written and extraordinarily anti-American decision on tariffs issued yesterday”.
Britain had previously secured the lowest rate of 10 per cent, with Prime Minister Sir Keir Starmer and Trump agreeing additional exemptions for the UK’s steel sector and automotive manufacturers.
The stock market has been volatile since Trump returned to office | Reuters
President Trump is an advocate of tariffs | GETTY
Following this weekend’s developments, the British Chambers of Commerce (BCC), which represents 50,000 companies across the UK, responded with alarm to the President’s latest move.
The organisation cautioned that the change would result in an additional five per cent levy on a broad array of goods exported to the United States, with the exception of products protected by existing transatlantic trade agreements.
William Bain, the BCC’s head of trade policy, said: “This will be bad for trade, bad for US consumers and businesses, and weaken global economic growth Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that.”
The business group urged ministers to maintain ongoing dialogue with their American counterparts to preserve Britain’s competitive position.
PICTURED: Traders react as Donald Trump rolls out tariffs | REUTERS
Ms Phillipson rejected suggestions that Britain should adopt a more confrontational stance with Washington, insisting that a blend of approaches was necessary.
Speaking to Sky News, she explained: “In reality you get more done when you are prepared to have serious conversations, often not in front of cameras or out there in the public, but actually behind the scenes, working closely between Governments.”
The minister emphasised that negotiations were taking place “right to the very, very highest levels” to ensure British interests were communicated clearly. Reform UK’s Treasury spokesman Robert Jenrick described the blanket tariffs as “harmful for trade” and said his party opposed them “very strongly”.
He suggested that Nigel Farage would prove more effective at negotiating with Trump than the Prime Minister, adding that if Sir Keir was “willing to swallow his pride and ask for Nigel’s help”, the Reform leader would be prepared to assist.