London: The British government on Friday said it has an argument in favour of convincing US President Donald Trump not to impose tariffs on its trade with the UK.
Business and Trade Secretary Jonathan Reynolds told the BBC that the United States did not have a trade deficit with the UK on manufactured goods, which would make tariffs unnecessary. “We’ve obviously got a services-based economy. The US does not have that deficit with us so if that’s the logic of that position, I think we’ve got an argument to engage with,” said Reynolds.
Tariffs are a key part of Trump’s economic agenda as he assumed office for a second term earlier this week. He not only sees them as a way of growing the US economy, protecting jobs and raising tax revenue but also as leverage to pursue other policies targeted at certain countries.
He has indicated a tax on imports from China and has also threatened tariffs on Canada and Mexico. Tariffs, or higher taxes on imports to the US, would make it more expensive for companies to sell goods in the world’s largest economy. However, Trump has since indicated that he “would rather not” impose tariffs, suggesting trade deals are on the table.
The US President told global executives at the World Economic Forum (WEF) in Davos this week that they could either produce their goods in the US or face widespread tariffs worth hundreds of billions or even trillions of dollars.
Reynolds , among the ministers who were in Davos to “spotlight UK’s investment offer to global business leaders”, met European Union Trade Commissioner Maros Sefcovic at the summit.