The UK does not want to take revenge on Trump’s 25% of vehicles: ‘We want to provide a better trade relationship’
Britain does not want to escalate trade wars, Finance Minister Rachel Reeves said on Thursday after US President Donald Trump announced imports on car and car parts.
The answer came with London locked in talks with Washington for potential security of a trade agreement after Brexit.
“We are not currently in a position where we want to do anything to escalate these trade wars,” Reeves told Sky News.
“We want to provide a better commercial relationship with the United States,” she told the Emiter, adding that the Labor Government “is in extensive conversations” with Trump’s administration over the insurance of a trade agreement.
On Wednesday, Trump announced a steep tariff to the car sector, causing threats to retaliate trade partners ahead of further promised levies in the store next week.
“What we will do is a 25 percent tariff on all cars not made in the United States,” Trump said, signing a command in the oval office.
Duties enter into force at 12:01 (0401 GMT) on April 3 and affect cars and light trucks in foreign made. The key parts of the car will also be affected within the month.
The UK trade body invited the United States and Britain to make an agreement that avoids Trump’s “disappointing” tariffs on foreign cars.
“The industry invites both sides to gather immediately and conclude an agreement that works for everyone,” said Mike Hawes, the executive director of the engine manufacturers and merchant manufacturers, in a statement on Wednesday.
“The auto industry in the UK and the United States has a long and productive relationship, and US consumers enjoy vehicles built in Britain by some iconic brands, while thousands of motorcycle motorcycles in the UK buy cars made in America,” Hawes noted.
He said that “Instead of imposing additional tariffs, we should explore the ways in which the possibilities of British and American manufacturers can be created as part of a mutually useful relationship, use consumers and job creation and growth throughout the Atlantic.”
The British car industry is dominated by foreign players, including Nissan, owner of Peugeot Stellantis and BMW who make up the mini.
Most of their vehicles produced in the UK is intended for export, mainly to the European Union.
Speaking at the end of January, Hawes said that the United States was “an important market for” luxury brands produced in the UK, such as Bentley and Rolls-Royce, adding that it allows “a greater opportunity to absorb” tariffs.
This story is originally shown on Fortune.com
