Britain Will Respond Thoughtfully to Potential U.S. Tariffs, Says Business Minister

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Britain will carefully weigh its options before responding to potential new tariffs from U.S. President-elect Donald Trump’s administration, according to Business and Trade Minister Jonathan Reynolds in an interview with the Financial Times on Friday.

Trump, who takes office in January, has proposed blanket tariffs of 10% to 20% on nearly all imports and has already vowed significant tariffs on Canada, Mexico, and China.

Reynolds noted that there is little domestic support in Britain for protectionist policies. While he acknowledged that retaliatory measures might be considered in some instances, he cautioned that raising the cost of goods or food for British citizens would be an unappealing move.

He expressed hope that Britain would not be a primary target for the tariffs, highlighting the country’s balanced trade relationship with the U.S., which could lower the risk of new trade barriers.

However, Reynolds downplayed the likelihood of a traditional free trade agreement between the two nations, citing Britain’s stringent food standards as a potential sticking point.

Last month, Finance Minister Rachel Reeves emphasized the importance of free trade and committed to making strong representations to Trump’s incoming administration. Meanwhile, Bank of England policymaker Megan Greene remarked on Thursday that the impact of Trump’s proposed higher U.S. import tariffs on British inflation remains uncertain.

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.