Trump urged not to put massive tariffs on UK
4 min readThe UK’s business secretary, Jonathan Reynolds, has called on the United States to exclude the UK from the hefty tariffs that President Donald Trump has threatened to impose on certain foreign exports. In an interview with the BBC, Reynolds pointed out that the US does not have a goods trade deficit with the UK—meaning that the value of goods the UK exports to the US is roughly equal to what it imports from the US, unlike the situation with many other countries where trade imbalances exist.
Reynolds emphasized that this absence of a trade deficit between the UK and the US gives the UK a strong argument to avoid the tariff measures that Trump has vowed to impose on imports. Trump’s stance on tariffs has become a cornerstone of his economic strategy. He has been clear that he sees tariffs as a tool to boost the US economy, protect jobs, and increase tax revenue. However, they have also become a means of leverage in his broader political and economic agenda.
The BBC asked Reynolds whether the UK could be exempt from these tariffs, given the lack of a trade deficit. In his response, Reynolds stated that the UK should be considered separately from countries with which the US has large trade imbalances, such as China. President Trump did not directly address the question but instead focused on the trade deficit between the US and Canada, which he also aims to address.
Trump’s threat to impose higher tariffs has been met with concern from world leaders. Such tariffs would raise the cost of exporting goods to the US, the world’s largest economy, making it harder for foreign companies to sell products there. At the World Economic Forum this week, Trump told global executives that they could either produce their goods in the US or face tariffs worth billions or even trillions of dollars. This message underscores the administration’s desire to bring manufacturing back to the US, particularly in industries hit by overseas competition.
However, Reynolds pointed out that, when it comes to manufactured goods, the US does not have a trade deficit with the UK. He explained, “The US does not have that deficit with us, so if that’s the logic of the tariff position, I think we’ve got an argument to engage with.” This distinction is key, as it could provide the UK with a case for exemption from tariffs based on the trade balance between the two countries.
Tariffs have been a central part of Trump’s economic vision. He views them not only as a way to protect American jobs and generate revenue, but also as a negotiating tool to force changes in trade policy. For example, Trump has threatened a 10% tariff on imports from China starting February 1, claiming that China is responsible for sending fentanyl—a synthetic opioid—into the US through Mexico and Canada. Similarly, he has also threatened 25% tariffs on goods from Canada and Mexico, citing concerns over fentanyl and immigration.
Despite these threats, Trump has signaled a willingness to reconsider tariffs in certain situations. He recently mentioned that he “would rather not” impose tariffs, suggesting that there might be room for negotiating trade deals with these countries instead of imposing blanket tariffs.
Alongside the tariff discussions, Reynolds also addressed the UK’s approach to post-Brexit trade with the European Union. The UK has kept open the possibility of aligning its food and farm product standards with those of the EU to ensure smoother trade across borders. Reynolds stressed that such an agreement would not violate the government’s core principles or “red lines” regarding Brexit, as it would not involve rejoining the EU customs union or the single market.
The EU’s trade commissioner, Maros Sefcovic, has indicated that there may be room for a new UK-EU agreement, including cooperation on standards and customs. This potential agreement aligns with the UK government’s “twin-track strategy,” which aims to enhance trade with both the EU and countries outside the union. Reynolds clarified that the UK could improve its trade terms with the EU while pursuing closer trade relations globally, without revisiting the contentious debates of Brexit.
In the UK’s 2019 general election, the Labour Party campaigned on a promise to reduce the barriers and bureaucracy for exporting food and agricultural products to the EU. However, it remains unclear how extensive any future agreement with the EU will be. With ongoing discussions, the resolution of this issue could come soon, though no firm decisions have yet been made.
The Conservative Party has voiced frustration over the potential for a new trade deal with the EU, with shadow foreign secretary Dame Priti Patel accusing the government of “bending the knee to the EU.” On the other hand, the Liberal Democrats have criticized the government for not doing enough to smooth trade relations with the EU.
As these debates unfold, the UK’s approach to both its relationship with the US and its future trade policies with the EU will be crucial in shaping its post-Brexit economic landscape.
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