LONDON — The United Kingdom’s trade chief is set to initiate negotiations for a trade agreement with U.S. President Donald Trump’s administration in Washington next week. This endeavor aims to alleviate the pressure of impending tariffs that could significantly impact British industries, particularly in light of Trump’s recent imposition of a 25 percent global levy on steel and aluminum.
Negotiations to mitigate tariff impacts
During a visit to the White House last month, Prime Minister Keir Starmer discussed the potential for a “real trade deal” that would ideally make tariffs unnecessary. In a statement to Parliament, Starmer confirmed that the U.K. is actively pursuing an economic agreement that encompasses tariffs, emphasizing the importance of successful negotiations. While the U.K. has refrained from retaliating against Trump’s metal tariffs thus far, Starmer noted that “we will keep all options on the table.”
Reynolds, the trade chief, articulated a pragmatic approach, stating that the government is swiftly working towards a comprehensive economic agreement with the U.S. that aims to eliminate additional tariffs, ultimately benefiting British businesses and the economy. Following the announcement of Trump’s metal tariffs, Reynolds remarked, “Next week you can expect the business secretary to go to Washington to discuss the wider economic deal.” A spokesperson from No. 10 emphasized that securing the right agreement is paramount.
Upcoming challenges and ongoing discussions
This upcoming visit coincides with Trump’s anticipated round of tariffs set to take effect on April 2. These tariffs are expected to be reciprocal, aligning U.S. tariff rates with those of other countries, including the U.K. To navigate these complexities, Reynolds has maintained regular dialogues with U.S. Commerce Secretary Howard Lutnick, exchanging insights on the trade deal and Trump’s tariff threats over the past few weeks. The goal is to “progress those discussions” during the forthcoming trip, according to the spokesperson.
In addition, Britain’s ambassador to Washington D.C., Peter Mandelson, has been actively working on a technology-focused initiative dubbed “MEGA” (Make our Economies Great Again) since his arrival in Washington last month, further underlining the strategic importance of this trade negotiation.