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The prime minister will talk to business leaders, while the trade secretary will look at the markets on Thursday after Donald Trump slapped a 10% tariff on US imports of British goods.
Jonathan Reynolds will address MPs on Thursday morning after Mr. Trump confirmed the import levies on countries around the world, and kept America’s “statement of economic independence”.
He said on Wednesday night that the UK is still trying to make an agreement with the US that “we hope will reduce the impact of rates, but that” nothing is off the table “when it comes to an answer.
Meanwhile, Downing Street has suggested that they have been confirmed in their approach to negotiation with the US in the hope of bringing about an exemption. The 10% tax facing British goods is half the EU.
In a speech from the White House Rose Garden, Mr. Trump confirms that from midnight in Washington, 5am in the UK, a 25% tariff on all foreign cars imported to the US would be – a move that could cost the fear for experts could cost 25,000 jobs in the British automotive industry.
And he indicated that rates of 10% would apply to other UK products – the same level as the global “baseline” he introduced for countries around the world as part of its ‘reciprocal’ measures from Saturday.
He also hit a ‘excessive’ VAT tariffs, which he described as a hindrance to US firms.
No immediate retaliatory measures are expected from Westminster as officials continue to focus on obtaining an economic agreement with their peers in Washington.
Sir Keir Starmer is expected to meet with companies on Thursday, to warnings that the changes will be a ‘blow’ for British firms.
The Federation of Klein Enterprises (FSB) warned that the move would handle a ‘big blow’ for small and medium businesses, which already has the pressure of the house.
FSB policy chair Tina McKenzie said: “The fallout will hinder growth, harm opportunities and put a serious dive in the global economy,” Tina McKenzie said.
Other countries were hit by more difficult rates from Mr. Trump, including the EU who faces 20%, Japan with 24% and China with 34% tariffs.
A downing street -source said: ‘We don’t want rates at all, but a lower levy than others confirm our approach.
‘It matters because the difference between 10% and 20% is thousands of jobs.
“We will continue to negotiate, stay cool and stay calm. We want to negotiate a sustainable trade agreement, and of course to lower rates. Tomorrow we will continue with the work. ‘
The 25% levy on cars was expected, but the 10% rate on other goods was lower than expected, with the fear of it being 20% on the VAT.
In a statement on Wednesday night, Mr. Reynolds said: ‘The US is our closest ally, so our approach is to stay calm and be committed to doing this agreement, which we hope that the impact of what was announced today will reduce.
‘We have a variety of tools at our disposal and we will not hesitate to act.
“We will continue to work with British businesses, including assessing the impact of any further steps we take.
“Nobody wants a trade war and our intention remains an agreement. But nothing is off the table and the government will do everything needed to defend the national interest of the UK. ‘
The conservatives described the tariff announcement as “disappointing news” that “working families” will worry “, but suggested that Brexit saved the UK of a higher tax rate.
Andrew Griffith, secretary of the shadow trade, said: “The silver lining is that Brexit, against which labor ministers have voted no less than 48 times, means we face much lower rates than the EU: a Brexit dividend that will protect thousands of British work and businesses.”
Meanwhile, the liberal democratic leader, Sir Ed Davey, has suggested that the situation calls for closer cooperation with Europe.
Sir Ed accused the Lord Trump of kicking off a ‘destructive trade war’, saying, ‘The Prime Minister must bring our Commonwealth and European partners together in a coalition of the willing on Trump’s rates, when possible use retaliation rates and sign new trade agreements with each other.’
The new tariff measures will remain in place indefinitely, the White House said Wednesday night until Mr. Trump decided that “the threat posed by the trade deficit and underlying recycling treatment was satisfied, resolved or softened”.
The dollar initially dropped sharply against other currencies while the president spoke, but they began to relieve when he unveiled the entire package of measures.
He described it as “one of the most important days” in American history.
“‘This is our statement of economic independence,’ he said.
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