High-level talks are taking place after Donald Trump's announcement of 15% global tariffs and the Government wants “the best possible deal” for UK businesses, a cabinet minister has said.
Education Secretary Bridget Phillipson admitted businesses face “uncertainty” after the move but insisted Britain expects its “preferential” trade deals with the United States to continue.
The US president said on Saturday he would impose a 15% global tariff “effective immediately” after the Supreme Court struck down his previous import tax policy in a ruling on Friday.
The UK's largest business organization quickly expressed its dismay at the announcement and urged the Government to continue dialogue with its US counterparts to maintain Britain's competitive advantage.
The British Chambers of Commerce warned that the change would mean a further 5% increase in tariffs on a “wide range” of exports to the United States, except those covered by a transatlantic trade deal.
On Sunday, Ms Phillipson was asked whether it was time to use the “iron fist” rather than the “velvet glove” in dealings with the White House.
He insisted the UK has a “really good relationship” with the US despite a period of tensions over the president's ambitions to annex Greenland, which Britain and other European countries opposed.
“You talked about the approach of whether you take a tough approach or a more nuanced approach… it has to be a combination of all those things,” the minister told Sky's Sunday Morning With Trevor Phillips programme.
“You can actually do more when you are prepared to have serious conversations, often not in front of cameras or in public, but behind the scenes, working closely across governments, and we have a really strong relationship with the United States.
“That's something that's not about a president or a prime minister, but about that long-standing, long-standing relationship that's right for our country and for national security.”
Asked about the implications of the new tariff rate for Britain, he said: “So we got a preferential deal.
“We, through the work that the Prime Minister has been leading to engage with the United States government and with President Trump, hope that this will continue, but these discussions are ongoing.
“This is an evolving situation but of course we want to get the best possible deal for British businesses.
“I understand the uncertainty this causes you, but please rest assured that we will always be working to make sure you get everything you need.”
Trump signed an executive order on Friday night that allowed him to bypass Congress and impose a 10% tax on imports from around the world, after the Supreme Court struck down his “reciprocal tariffs,” introduced under an emergency powers law in April.
In a post on Truth Social on Saturday, he later said he would increase this rate to 15% following a “ridiculous, poorly worded and extraordinarily un-American decision on tariffs issued yesterday.”
Britain had received the lowest tariff rate of 10% and a subsequent deal struck by Prime Minister Sir Keir Starmer and Trump saw new exceptions for the country's steel industry and car makers.
Questions remain over the implications for the UK, although officials are understood to believe the changes will not have an impact on most of Britain's trade with the United States.
Asked if previous agreements remain in place, Phillipson said “conversations at the highest levels” were taking place to “ensure that what we consider to be in the national interest is heard loud and clear.”
The BCC, a network representing 50,000 UK businesses, quickly expressed its dismay at the president's latest announcement.
“This will be bad for trade, bad for American consumers and businesses, and will weaken global economic growth,” said the organization's head of trade policy, William Bain.
“Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve this.”
UK Treasury spokesman Robert Jenrick said the party was “very strongly” opposed to blanket tariffs, describing the move as “detrimental to trade” at a time when “we cannot afford it”.
Asked if he wanted Nigel Farage to tell Donald Trump he was wrong, Jenrick said: “Yes, absolutely.
“And look, Keir Starmer has done his best, but I bet Nigel Farage will be better at negotiating with Donald Trump than Keir Starmer.”
He added: “If Keir Starmer is willing to swallow his pride and ask for Nigel's help to try and resolve the situation, then I can assure you Nigel would want to do that.”
