UK to Make Case to Trump Against Tariffs

The UK business secretary says the government is set to make the case to Donald Trump’s new administration that there is no need for huge tariffs on UK exports to the US.

Jonathan Reynolds told the BBC he would argue that the US has no goods trade deficit with the UK, which occurs when a country imports more than it exports.

The move comes after President Trump doubled down on his threat to impose big tariffs on countries wanting to sell products in the US.

The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because it will make it more expensive for companies to sell goods in the world’s largest economy.

But tariffs are a central part of Trump’s economic vision. He sees them as a way of growing the US economy, protecting jobs and raising tax revenue.

Trump has already said he is considering imposing a 10 per cent tariff on imports of Chinese-made goods as soon as February, and threatened ones of 25 per cent on Canada and Mexico.

The US president told global executives at the World Economic Forum this week that they could either produce their goods in the US or face widespread tariffs worth hundreds of billions or even trillions of dollars.

But Reynolds said when it comes to manufactured goods, the US did not have a trade deficit with the UK.