LONDON: Britain’s finance minister said on Wednesday the UK would not “rush into action” over impending US tariffs, as the government hopes to reach a post-Brexit trade deal with Washington.
The UK government is working to secure a new economic deal with the United States which could ultimately help it avoid – or at least mitigate – a fresh raft of tariffs soon to be announced by President Donald Trump.
“The prize on offer is a good economic agreement between us and the United States, we won’t do anything to put that in jeopardy,” finance minister Rachel Reeves told a parliamentary committee.
Reeves added that discussions were ongoing with other countries and the European Union over an “appropriate response,” noting that she had spoken with EU trade commissioner Valdis Dombrovskis.
Britain hopeful US tariffs will be reversed with economic deal
She said the government wanted to avoid a tariff response that could amount to “posturing,” preferring instead to take a “clear headed” approach as it seeks to shore up the UK’s struggling economy.
As it stands, the United States is the UK’s single largest country trading partner.
Britain’s spending watchdog, the Office for Budget Responsibility, has estimated that US levies of up to 20 percent would reduce the UK’s GDP by 0.6 percent in the 2026-2027 fiscal year.
UK media has reported that London may scrap a tax on tech giants to avert US tariffs under Trump and clear a pathway to a trade deal.
The digital tax is currently worth about £800 million ($1 billion) annually to the UK Treasury.
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