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UK threatens reciprocal measures over US tariffs
Downing Street has indicated that retaliatory action remains possible if the United States fails to uphold its trade agreement with Britain, though officials stress they aim to avoid a trade war.
Trump announces sweeping 15% tariff
The move follows US President Donald Trump's decision to impose a 15% tariff on imports from all countries starting Tuesday. The UK government expects most of its existing trade deal with the US-covering sectors like automobiles, steel, and pharmaceuticals-to remain unchanged, but describes the situation as fluid.
Meanwhile, the European Union suspended its own US trade agreement on Monday in response to the tariff announcement. Trump later warned that nations attempting to exploit the situation would face even steeper tariffs.
Supreme Court ruling complicates trade landscape
Last Friday, the US Supreme Court invalidated most of the global tariffs Trump introduced last year, ruling that he had exceeded his authority under the International Emergency Economic Powers Act (IEEPA). The decision affected tariffs announced on what the administration called "Liberation Day."
In response, Trump unveiled a new 10% global tariff, later increasing it to 15%. The revised tariff, introduced under Section 122 of the 1974 Trade Act, will temporarily exempt critical minerals, metals, and pharmaceuticals.
UK among hardest hit by new tariffs
Analysis by the think tank Global Trade Alert (GTA) suggests Britain will be one of the most affected countries if the 15% tariff takes effect, as it had secured a more favorable 10% rate in negotiations. Conversely, countries like China and Brazil, which already face higher tariffs, may see less impact.
The new levy will not apply to sectors where the UK and US had already agreed on specific tariffs, such as steel, aluminum, automobiles, and aerospace-sectors that dominate UK-US trade. Only goods outside these negotiated agreements will face the 15% rate.
Business leaders express concern
Andy Haldane, president of the British Chamber of Commerce, warned that the UK would "sit toward the bottom of the league table" among US trade partners if the tariff is implemented. He criticized the move as counterproductive, noting that allies who had secured favorable deals would be disproportionately affected.
"The perversity of what happened over the weekend was that those who got good deals-the allies-have been most disadvantaged."
Andy Haldane, British Chamber of Commerce
US and EU trade talks stall
US Trade Representative Greer told CBS on Sunday that discussions with the EU and other nations had taken place over the weekend. He emphasized that the existing trade agreements were not contingent on the outcome of the Supreme Court case and that the US expected its partners to honor their commitments.
Despite these assurances, the EU Parliament announced on Monday that it would pause its trade deal with the US "until further notice." Bernd Lange, chair of the Parliament's international trade committee, described the situation as "more uncertain than ever" and called for legal clarity before proceeding.
Trump issues warning to trade partners
In a post on Truth Social on Monday, Trump appeared to reference the EU's decision, stating that any country attempting to "play games" with the Supreme Court ruling would face "a much higher Tariff, and worse."
The UK prime minister's spokesman reiterated Britain's pragmatic approach, stating that while no options had been ruled out, the focus remained on constructive dialogue with US officials to preserve the UK's competitive edge.
"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."
UK Prime Minister's Official Spokesman
Manufacturers call for clarity
Richard Rumbelow, director of international business at Make UK, a manufacturing industry body, warned that UK exporters were increasingly concerned about potential disruptions to US market access.
"Clarity is now urgently required on how UK exports will be treated on arrival into the United States."
Richard Rumbelow, Make UK
