UK 'not the target' of Trump's tariffs as free trade deal talks could be back on the cards, says expert

UK ‘not the target’ of Trump’s tariffs as free trade deal talks could be back on the cards, says expert

Posted by Admin November 10, 2024 Bussiness

The UK is “not the target” of potential US tariffs after Donald Trump’s presidential election victory, a trade expert has told Sky News.

Duncan Edwards, the chief executive of BritishAmerican Business, said Mr Trump‘s return to the White House could also mean fresh free trade agreement talks with the US.

Discussions stalled under Joe Biden due to the current president’s concerns over Northern Ireland and the legality of post-Brexit regulations.

President-elect Trump has frequently mentioned his support for trade tariffs.

He said they could increase revenues, and also encourage internal US trade rather than using international markets.

“Well, the first thing to say is the UK is not the target,” Mr Edwards said.

“And there will be an opportunity for the UK to re-enter trade negotiations as they did four years ago.

“And let’s see if they’re practical and agile about how they approach that process… they have a chance of an agreement.”

Mr Trump wants to impose the highest tariffs on China.

He said before he won the 5 November election that he would raise tariffs on Chinese goods to 60% and impose a “universal” tax of at least 10% on imports from other countries.

One US governor – Democrat Phil Murphy of New Jersey – believes Mr Trump will not impose tariffs on the UK.

Speaking to Sunday Morning with Trevor Phillips on Sky News, Treasury minister Darren Jones said the UK was considering “lots of different scenarios”.

He added that his government’s position was to “support free trade” – including between the United States and United Kingdom.

Mr Jones said: “It’s a very strong, very fruitful relationship, both for us but also for the American economy and of course we want to protect that and strengthen it in the years ahead.”

He added: “And I think President-elect Trump has said that.

“He recognises the important relationship the US has with the UK, and that’s the basis on which we will be co-operating in future years.”

There were several rounds of free trade negotiations between the UK and the US under the last Trump administration.

However, with President Biden pulling support for such a deal, the UK has in the meantime signed agreements with various states, including Texas and Florida.

Talk of a trade deal with the US might raise the spectre of issues like “chlorinated chicken” being allowed into the UK.

Mr Edwards said that, due to the wide support Mr Trump has in agricultural areas, any deal would likely need to allow US food products into the UK – and vice versa.

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“That’s where the political difficulty will be,” he said – while insisting US food was safe.

He said chlorinated chicken was “a shorthand”, and that the difference between food standards was “not a safety issue” and would make groceries cheaper.