UK to probe possible retaliatory response to US tariffs
By Abigail Townsend
Date: Thursday 03 Apr 2025
(Sharecast News) - The British government has not ruled out retaliatory action against the US, it confirmed on Thursday, after Donald Trump imposed sweeping tariffs worldwide, including on the UK.
Trump imposed a new 10% baseline tariff on all goods imported into the US on Thursday, with further taxes announced for countries who he deems unfriendly to American interests.
A 20% tax was levied on the European Union and 34% on China, among many other countries. The tariffs are on top of an already announced 25% levy on cars, car parts and steel imports.
A number of countries have already made it clear they will impose their own duties on US imports in response, leaving the world on the brink of a global trade war and sending markets into freefall.
The UK was one of a handful of countries to have the baseline tariff applied only.
But meeting with business leaders at Downing Street on Thursday morning, prime minister Keir Starmer acknowledged the tariff would still have an economic impact and "nothing was off the table".
He said: "Nobody wins in a trade war. That is not in our national interest.
"We have a fair and balanced trade relationship with the US. Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship, they continue, and we will fight for the best deal for Britain.
"Our intention remains to secure a deal. But nothing is off the table."
Business secretary Jonathan Reynolds, meanwhile, confirmed the government was assessing possible retaliatory action.
Addressing the House of Commons, he told MPs: "I am today launching a request for input on the implications for British businesses of possible retaliatory action.
"This is a formal step necessary for us to keep all options on the table.
"We will seek the views of UK stakeholders over four weeks until 1 May on products that could potentially be included in any UK tariff response.
"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 would be lifted."
Reynolds also reiterated Starmer's position that a trade deal remained in the best interests of the country and was the government's current focus.
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