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UK Races to Secure US Trade Deal on Tariffs

March 13, 2025
Lawrence Ankutseby Lawrence Ankutse
in UK
0
UK Races to Secure US Trade Deal on Tariffs

Keir Starmer speaking at the House of Commons

Keir Starmer’s government is racing against time to secure a trade agreement with Donald Trump’s White House to avoid steep tariffs on British steel and aluminium. 

The UK is seeking an exemption from the 25 percent tariffs imposed by Washington on Wednesday, March 12 as well as preventing further reciprocal tariffs expected to take effect next month.

The decision by the US administration to enforce these tariffs signals the failure of last-minute lobbying efforts to shield British industry from the sweeping global trade measures. 

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While the European Union swiftly retaliated by imposing counter-tariffs on American goods, the UK government has chosen a more measured approach, prioritizing diplomatic negotiations over immediate economic reprisals.

British officials are already engaged in urgent discussions with their American counterparts, working to finalize an economic agreement that would spare the UK from the latest tariffs. Business Secretary Jonathan Reynolds has been leading the charge, holding direct talks with US officials to advocate for the interests of British industries.

On Thursday, Business Minister Sarah Jones addressed Parliament, emphasizing that the government is committed to defending the nation’s economic interests. “Of course, we will continue talking with the US, as the secretary of state has been doing, and make sure we are standing up for British industry and doing the right thing,” she assured MPs.

The prime minister stated that “all options are on the table” in response to the tariffs but reaffirmed that a “pragmatic approach” remains the priority. Expressing disappointment over the decision, he noted that negotiations for a broader economic agreement, which includes tariff discussions, are already underway.

Trade Talks Enter Critical Phase

Sources suggest that early-stage negotiations between UK and US trade teams are already progressing, with both sides working toward an agreement as quickly as possible. Next week, Business Secretary Jonathan Reynolds will visit Washington for high-level discussions, marking an intensified push by the UK government to finalize a deal.

However, sources within the Trump administration indicate that while the UK could secure a “quick trade deal,” concerns over free speech, particularly those raised by Vice President JD Vance, may complicate negotiations. 

UK Races to Secure US Trade Deal on Tariffs
JD Vance

Vance, who is overseeing the US side of the talks, has prioritized discussions on free speech amid growing tensions over social media regulations and proposed online safety laws, which he believes unfairly target US tech companies.

Adding to the pressure, the White House is preparing to expand its tariff measures further. President Trump is reportedly planning to impose 25 percent tariffs on imports from countries that levy a Value Added Tax (VAT) on American goods — this includes the UK. These additional tariffs could come into effect as early as April 1, intensifying the urgency for British negotiators to reach a deal before the deadline.

Although government sources caution against setting definitive timelines for trade agreements, the looming threat of economic penalties has forced officials to accelerate negotiations. Within Whitehall, the urgency of the situation has reportedly led to the informal designation of the April deadline as “World Tariff Day.”

Calls for a Stronger UK Response

While ministers stress the importance of maintaining a “cool-headed approach” to negotiations, growing voices within the British steel industry and trade unions are calling for a more robust response.

Gareth Stace, director-general of trade association UK Steel, criticized the US tariffs as “hugely disappointing” and urged the government to take “decisive action” to protect domestic manufacturers.

Unite General Secretary Sharon Graham has called for immediate government intervention, stating that steel should be “immediately designated as critical national infrastructure to properly protect it.” Meanwhile, the steelworkers’ union Community has demanded that the UK government match any retaliatory measures imposed by the European Union “at a minimum.”

As negotiations continue, the British government faces mounting pressure to strike a balance between maintaining strong trade relations with the US and protecting domestic industries from economic harm.

READ ALSO: SIGA CEO Advocates Bold Reforms for Ghana’s SOEs

Tags: British steel industryeconomic negotiationsfree speech concernsUK trade dealUS Tariffs
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