UK Minister Declines to Rule Out Retaliatory Tariffs in Response to Trump's New 15% Global Levies
In a significant development for international trade relations, a senior Cabinet minister has refused to rule out the imposition of retaliatory tariffs on the United States. However, Education Secretary Bridget Phillipson has insisted that it is preferable to negotiate with Donald Trump's administration "behind the scenes" rather than through public confrontations.
Preferential Trade Deal Under Threat
Phillipson also stated that the UK government would "hope and expect" its preferential tariff agreement with the US to continue. This comes after President Trump announced a new 15% global tariff in response to a Supreme Court ruling that struck down his previous import levies. The Supreme Court's decision, delivered on Friday, overturned the president's "reciprocal tariffs" imposed under an emergency powers law last April, dealing a major blow to his economic agenda.
The latest announcement from the US president has thrown the UK's trade strategy into disarray, raising serious questions about whether previous deals negotiated with the US still stand. The UK had previously secured the lowest tariff rate of 10%, with subsequent agreements providing further carve-outs for Britain's steel industry and car manufacturers.
Behind-the-Scenes Approach Preferred
When questioned on Sky News about whether the UK plans to retaliate over Mr Trump's latest tariff threat, Ms Phillipson responded: "We always stand up for what's right for Britain. And I think the prime minister demonstrated that with the approach he took around Greenland."
She elaborated: "But the reality is that if you want to get things done, it's better to do that behind the scenes." Pressed specifically on whether Britain could respond with its own levies, the education secretary explained: "In reality, you get more done when you have serious conversations, often not in front of cameras or out there in the public, but actually behind the scenes, working closely between governments."
Strong UK-US Relationship Emphasised
Phillipson emphasised the enduring nature of the UK-US relationship, stating: "We do have a really strong relationship with the US, that is something that is not about one president or one prime minister. It's about that long standing and enduring relationship that is right for our country and is right for national security."
She added that this cooperation is "really important at a time when we see significant global instability that we work together on those key questions like defence." The minister confirmed that discussions are ongoing with the US, with British ministers seeking "the best possible deal for British businesses."
Uncertainty for British Businesses
Regarding the implications of the new 15% tariff rate for the UK, Phillipson acknowledged: "We did secure a preferential deal. 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 addressed concerns from businesses directly: "I understand the uncertainty it does cause for them, but they can be assured that we will always be working to make sure they get everything that they need."
Trump's Response to Supreme Court Ruling
Following the Supreme Court's decision, President Trump initially announced he would replace the overturned tariffs with a 10% tax on all goods entering the US. However, in a post on Truth Social on Saturday, he increased this to 15%. The president doubled down on imposing levies, claiming the court "has been swayed by foreign interests" and suggesting that other countries were "dancing in the streets, but they won't be dancing for long, that I can assure you."
Government Position and Business Impact
A UK government spokesperson commented on Friday: "This is a matter for the US to determine but we will continue to support UK businesses as further details are announced. Under any scenario, we expect our privileged trading position with the US to continue and will work with the administration to understand how the ruling will affect tariffs for the UK and the rest of the world."
Officials currently understand that the new tariffs will not impact most of Britain's trade with America, including preferential deals on steel, cars and pharmaceuticals. However, the president's latest announcements have created significant uncertainty about the continuity of these arrangements, with the government maintaining that discussions are ongoing to secure the best possible outcome for British businesses facing this evolving trade landscape.
