Rachel Reeves begs Trump to not slap automotive tariffs on the UK | EUROtoday

Embattled chancellor Rachel Reeves has begged Donald Trump to not impose crippling tariffs on UK automotive exports subsequent week.

Ms Reeves disclosed the federal government is in emergency talks with the US to cease the levy, which is because of take impact subsequent Wednesday.

President Trump’s announcement of a 25 per cent tariff on all automotive imports, together with from the UK, is one other setback to the chancellor after widespread criticism of her spring assertion.

Ms Reeves informed BBC Radio 4’s Today programme the UK is in “intense negotiations at the moment with our US counterparts” over “cars and steel and every other type of tariff”.

She added: “[Negotiations have] been ongoing since our prime minister, Keir Starmer, went to the White House to meet the US president just a few weeks ago. Those talks continue.”

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Asked if the talks might result in exemption for UK-based automotive corporations, she replied: “Well, that’s what we’re working on. We’ve got a few more days left of those negotiations before these tariffs are due to come in.”

She mentioned Mr Trump was “rightly concerned” about international locations with giant commerce surpluses with the US. But she added: “The UK is not one of those countries. We do not run a surplus with them.”

The automobile tariffs are the newest risk to Ms Reeves’s financial plans, that are beneath fireplace from specialists after her package deal of bulletins on Wednesday.

Around 4 out of 5 vehicles made within the UK are exported, and 16.9 per cent of UK automotive exports have been to the US final yr.

In an try to keep away from being drawn right into a commerce struggle with the US, Ms Reeves informed Sky News: “We’re not at the moment at a position where we want to do anything to escalate these trade wars.

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“Trade wars are no good for anyone. It will end up with higher prices for consumers, pushing up inflation after we’ve worked so hard to get a grip of inflation, and at the same time will make it harder for British companies to export.”

She went on: “We are looking to secure a better trading relationship with the United States. I recognise that the week ahead is important. There are further talks going on today, so let’s see where we get to in the next few days.”

Figures from business physique the Society of Motor Manufacturers and Traders (SMMT) present the US is the second largest export market after the European Union for vehicles constructed within the UK.

Jaguar Land Rover may very well be one of many UK automobile producers most affected by tariffs.

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Meanwhile, shadow chancellor Mel Stride mentioned it’s “very important” that the UK has a commerce cope with the US which “means we are protected from those tariffs”.

He informed ITV’s Good Morning Britain: “I think it’s a balance between we want to make sure that we have the right relationship with America on all sorts of levels, including security as well as economic, in order to make sure we get the very best for our country.”

The Liberal Democrats, however, have referred to as on the federal government to “toughen up” and introduce retaliatory tariffs on US carmakers like Tesla.

The get together’s deputy chief Daisy Cooper informed BBC Radio 4’s Today programme: “I think there’s only one language that Donald Trump understands, and that is the language of strength.

“What we Liberal Democrats are very concerned about is that the government strategy so far seems to be to cower in the corner and just ask Donald Trump to be nice to us, and just to hope that he doesn’t do anything nasty.

“That is not a strategy. So, we think the government needs to toughen up.

“We think the government needs to start preparing for retaliatory tariffs, and that those tariffs, that preparation, should start by looking at putting tariffs on Tesla cars, because clearly Elon Musk is a huge backer of Donald Trump, and that’s where we would start.”