Rachel Reeves alerts UK may decrease US automotive tariffs in push for commerce deal | EUROtoday

Chancellor Rachel Reeves has signalled the UK may decrease tariffs on US automotive imports as she tries to dealer a commerce take care of the Trump administration.

Reeves mentioned she needs “to see tariff and non-tariff barriers reduced between the UK and the US”.

The UK is searching for to decrease commerce taxes imposed by President Donald Trump of 25% for vehicles, metal and aluminium and 10% on different British exports.

One of the sticking factors for a commerce deal up to now has been meals requirements, however Reeves mentioned the UK wouldn’t be lowering these.

Earlier right this moment a doc circulated amongst US enterprise teams and unions searching for views on a possible take care of the UK, centered on reducing UK tariffs on US vehicles to 2.5% from their present 10%.

The chancellor urged she was open to this to safe a wider commerce deal.

President Trump has already imposed tariffs of 25% on all automotive imports to the US – together with from the UK.

The UK can be dealing with a broader tariff price of 10%, and is seeking to negotiate an settlement with the US administration, together with dozens of different nations hit with even increased levies – most of that are presently on pause till July.

UK negotiators are working “flat out” to get an settlement that’s within the nation’s nationwide curiosity, Reeves advised the BBC at an occasion in Washington.

“We are willing to reduce trade barriers in the UK, those trade barriers that do exist. And we want to build on the relationship that we have,” she added later talking at a Semafor occasion.

Some US officers have been optimistic in regards to the prospects of a deal. Last week US Vice-President JD Vance mentioned there was a “good chance” a commerce deal could possibly be reached with the UK.

Speaking to the BBC at an International Monetary Fund (IMF) occasion on Wednesday, Reeves mentioned the UK was “not going to rush into a deal”.

But she mentioned the federal government was “confident that working with our partners in the US we can get a better trading relationship and build on the substantial trade that already exists between our two great countries”.

“We want to get the right deal for Britain, to better support our industry, our jobs and consumers,” she added.

Reeves mentioned that the UK had been “really clear” in discussions with US negotiators “that we’re not going to be reducing agricultural standards in the UK”.

“The US administration respect and understand that we have high standards to support British farming, and to support British consumers, and we’re not going to be relaxing those standards,” she mentioned.

Many American farmers use development hormones as an ordinary a part of their beef manufacturing, one thing that was banned within the UK and the European Union within the Nineteen Eighties.

The US has beforehand pushed for a leisure of guidelines for its agricultural merchandise, together with beef from cattle which were given development hormones.

Farmers within the UK warned ministers final week to not dilute British meals requirements, saying the usage of hormones in rearing livestock can’t be accepted.

Trump has introduced in numerous tariffs on imports to the US, arguing they’ll increase US manufacturing and defend jobs.

These embrace, as a part of an ongoing commerce battle, levies of as much as 145% on Chinese items. China has hit again with a 125% tax on US merchandise.

The transfer has rattled the world economic system, sparking turmoil on world monetary markets.

Prices are anticipated to rise for customers within the US on account of the tariffs, as a result of corporations importing items passing on increased prices.

The IMF has lower its world development forecast due to the uncertainty attributable to tariffs, and says it expects US development to be hit the toughest.

However, Reeves mentioned: “I do understand the concerns the US has about countries around the world that run large and persistent trade surpluses with the US.”

She mentioned the UK “is not one of those countries” so “there is a deal there to be done between the UK and the US”.

She added that she understood “the need to rebalance the global economy”.

This, partially, is why the UK introduced on Wednesday a evaluation of low-value imports coming into the UK that are “undercutting the British High Street and British retailers” she mentioned.

This mirrors a US motion, with the White House set to clamp down on deliveries below $800 – particularly these despatched from China and Hong Kong – on 2 May.

It is ready to shut a loophole permitting low-value packages to enter the US with out incurring any duties.

The removing of the so-called “de minimis” rule will hit corporations together with fast-fashion agency Shein and Temu, the low-cost retail big.

Shein and Temu have each warned that they’ll improve costs “due to recent changes in global trade rules and tariffs”.

The UK authorities mentioned that the UK Trade Remedies Authority (TRA) could be placing extra assets into serving to companies report unfair commerce practices as a part of its evaluation.