Downing Street has insisted that 'nothing is off the table' in response to Donald Trump's renewed threats of increased global tariffs, as speculation mounts over whether Prime Minister Sir Keir Starmer will retaliate. The US president has threatened to impose 15 per cent global tariffs following his defeat in the US Supreme Court last week, casting doubt on the UK's preferential tariff deal with the US.
Mr Trump further criticised the court's ruling on Monday, declaring that he can use tariffs in a 'much more powerful and obnoxious way'. Downing Street has confirmed that discussions between the UK and US are 'happening at all levels', but did not rule out reciprocal action if the increased levy comes into force.
The prime minister's official spokesman said: 'Our approach to the US has always been pragmatic. We continue to have productive conversations with them... and those discussions are happening at all levels, but nothing is off the table at this stage. Industry doesn't want to see a trade war where both sides keep escalating the situation, and that's why our focus is on constructive engagement with our US counterparts to retain the UK's competitive advantage.'
Mr Trump's previous tariffs were imposed on most of the world last April under an emergency powers law. The UK received the lowest tariff rate of 10 per cent, and a subsequent deal secured further carve-outs for Britain's steel and car industries. However, questions have been raised over whether these deals still stand after the US president vowed to replace the 10 per cent levies with an increased 15 per cent rate.
On Monday, Mr Trump threatened more 'powerful and obnoxious' tariff measures, writing on Truth Social: 'The court has also approved all other Tariffs, of which there are many, and they can all be used in a much more powerful and obnoxious way, with legal certainty, than the Tariffs as initially used.'
Officials believe the changes will not affect most of Britain's trade with America, but the prime minister's spokesman could not give a timetable for clarity on how the tariffs might apply to British goods and services. Business Secretary Peter Kyle spoke to his US counterpart Jamieson Greer over the weekend and 'underlined his concerns about further uncertainty for business and reinforced the need to honour the UK-US deal'.
