UK Drafting list of items for potential retaliation allowance American rates

The British government makes a list of American products that could reach with retribution rates after President Donald Trump had announced a wave of new input tax.

This is a difficulty of the government’s position as ministers trying to complete a trade agreement with the US.

Business secretary Jonathan Reynolds says that he is consulting British companies on the likely impact of the 10% rates imposed on almost all exports of the UK To the US and which products should be on the list.

If British negotiators cannot agree with a deal to lower the 10% rate by 1 May, the business secretary MPS said that the government could impose retaliation rates on the entry of the US.

Trump told the BBC that he believed that Prime Minister Sir Keir Starmer “was very happy with how we” treated the UK at rates.

He told reporters that he was open to negotiations on rates such as countries “offered something that is so phenomenal”.

Trump spoke on board Air Force One and claimed that “every country has called us” since his announcement on Wednesday.

“That is the beauty of what we do, we place ourselves in the driver’s seat.”

Earlier on Thursday, the British government published An example list of American goods That could be confronted with future rates.

Standing on the list of 417 pages does not necessarily mean that a product is confronted with rates, the government said.

The list includes 27% of the entry from the US – chosen because they would have a “more limited impact” on the British economy, said the Ministry of Business and Trade.

The products range from pure bred horses and children’s clothing to crude oil, firearms and bourbon whiskey.

Reynolds says that conversations are underway with the US government to insure an economic deal aimed at avoiding or reducing rates.

But he warned that the UK “is the right to take any action that we consider necessary if a deal is not secured”.

In the case of reaching a deal with the US, consultations with companies would be paused, he added.

Speaking in the lower house, he said that the fact that the US had set lower rates at the UK compared to other countries “justified the pragmatic approach that the government has followed”.

However, he said that he was “disappointed” by the increase.

Conservative shadow business secretary Andrew Griffith argued: “The government did not get any special favors” – noted that the UK became the same rates as the Congo and the Kersteilanden.

The EU was hit by 20% rates and the lower percentage of the UK of 10% was actually a justification of those who “Piloried and Abused” for supporting the Brexit, Griffith argued.

Last year, the UK exported nearly £ 60 billion of goods to the US, mainly machines, cars and medicines.

In addition to the rates of 10%, a rate of 25% has been placed on the British export of cars, as well as steel and aluminum products.

Some products are exempt from the charges announced on Wednesday, According to Documents from the White House – Including the pharmaceutical sector of the UK, together with semiconductors, copper and some wood items.

The official predictor of the government estimates that a worst-case scenario-trading war could reduce the economic growth of the UK by 1% and the £ 9.9 billion in economic main room Chancellor Rachel Reeves would wipe away that gave himself in last week’s spring statement.

It may mean that, in order to comply with its own tax rules, she should levy taxes or make cutbacks on government spending.

Behind the scenes, the government says it has laid the foundation for a trade agreement with the US.

Insiders on the UK side say that a deal is practically closed. But nobody knows if, or when, will draw Trump in it.

Every deal would be wider than just lower rates that the BBC understands, aimed at technology, but also relate to elements of trade in goods and services, as well as agriculture – a controversial area in earlier failed American talks.

Chancellor Rachel Reeves has suggested that the UK could change its taxes on large technology companies as part of a deal to destroy American rates.

The tax on Digital Services, introduced in 2020, sets a 2% levy on technology companies, including large American companies such as Amazon, which yield around £ 800 million in tax per year.

Both the government and the business groups have largely supported a strategy not to provoke the Trump Witte Huis.

But there is a big question of whether President Trump’s Headline of 10% Universal rate is even for negotiation. Speaking with MPS, Reynolds suggested that it is, but the White House officials have told the BBC that the rate is bound by a broader emergency measure that can take time to relax.

For the first time, the government has announced a loose deadline for the negotiations – the business consultation about a response must be completed on 1 May.

If no deal is signed by the pressure on the prime minister to set back with retribution rates.