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UK-US Trade and Tariffs 2025-04-03
03 April 2025
Lead MP
The Secretary of State for Business and Trade Jonathan Reynolds
Debate Type
Ministerial Statement
Tags
EconomyEmployment
Other Contributors: 58
At a Glance
The Secretary of State for Business and Trade Jonathan Reynolds raised concerns about uk-us trade and tariffs 2025-04-03 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
EconomyEmployment
Government Statement
Today, I am making a statement on the United Kingdom’s economic relationship with the United States. The UK has a strong and balanced trading relationship worth £315 billion, supporting 2.5 million jobs across both countries. Yesterday, the US announced a 10% reciprocal tariff on UK exports and a 25% global tariff on cars. While disappointed by these tariffs, the Government is working to navigate this situation in our national interest. We have been engaged in discussions with the US since their new Administration took office, focusing on an economic deal that would deepen our relationship beyond just avoiding tariffs. The talks are ongoing and will remain so, aiming for a favourable outcome for both countries. To prepare for future options, we are launching a request for input from UK stakeholders until 1 May 2025 to assess possible retaliatory action. This will ensure businesses can influence the design of any potential measures while keeping all options open.
Andrew Griffith
Con
Arundel and South Downs
Question
Will he publish an urgent assessment of the impact of today’s tariffs on the UK economy so that markets can see whether the Chancellor’s emergency Budget sums still add up, or whether she will be back for more taxes? When will he give car makers clarity on the ZEV mandate?
Minister reply
The Government stands ready to support businesses through this challenging time. We are ensuring that businesses have reliable information and clear guidance on great.gov.uk. We remain committed to reaching a deal with the US while keeping all options open, including assessing potential retaliatory measures.
Jonathan Reynolds
Lab/Co-op
Oxford East
Question
BMW workers are concerned about potential trade conflicts. What discussions have you had with your EU counterparts?
Minister reply
We collaborate closely on our EU reset and trade negotiations, ensuring alignment and consistency in policy towards the automotive sector, including significant investments for electric vehicle infrastructure and R&D initiatives.
Daisy Cooper
LD
St Albans
Question
Will the Government take steps to bring Commonwealth and European partners together against Trump's tariffs? Will they look at energy costs and business rates reform during consultations?
Minister reply
We work closely with allies but represent our own national interests. The US tariff regime on VAT does not satisfy us; we aim for deeper trade relationships without compromising standards.
Callum Anderson
Lab
Buckingham and Bletchley
Question
Will the Secretary of State set out how the Government are working with international institutions such as the World Trade Organisation to prevent further escalation and position the UK as a leading champion for open markets?
Minister reply
We are strongly involved with the WTO, particularly supporting the re-election of Dr Ngozi Okonjo-Iweala. Despite challenges, we continue to play a constructive role in multilateral organisations where it serves our interests.
Steve Barclay
Con
North East Cambridgeshire
Question
What is the Government’s estimate of the cost of the tariffs and how will this affect the Chancellor's fiscal headroom?
Minister reply
The announcement came late last night, so a comprehensive assessment is ongoing. The impact on the UK depends not just on direct relations with the US but also on global trading dynamics. We will update the House as assessments progress.
Stella Creasy
Labour/Co-op
Walthamstow
Question
What do the tariffs mean for negotiations on the European reset and the summit in May?
Minister reply
Our aspirations remain clear for an ambitious EU reset on trade, which was a manifesto commitment. We are committed to balancing key trading relationships with both the US and the EU.
Alison Griffiths
Con
Bognor Regis and Littlehampton
Question
Does he regret his refusal to meet his US counterparts earlier?
Minister reply
The delay in formal procedures was not due to a lack of engagement; we were consistently in touch with our counterparts. The suggestion that I delayed or dithered is incorrect.
Bill Esterson
Lab
Sefton Central
Question
Will my right hon. Friend confirm his commitment to the plan for steel and the importance of our sovereign steelmaking capacity?
Minister reply
The Government remains committed to supporting the British Steel industry, including new investments and technology under the steel strategy.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
Can the Secretary of State offer any guarantee that future trade deals will not allow lower environmental or animal welfare standards in food imports?
Minister reply
We are committed to maintaining our SPS regime, which is a key part of all trade negotiations.
Suffolk Coastal
Question
Will the Secretary State reassure her and constituents that he will act firmly in national interests to protect British jobs, trade, industry, and consumers?
Minister reply
We are at all times acting in our national interest, making decisions at pace to progress negotiations and keep opportunities open.
Ben Obese-Jecty
Con
Huntingdon
Question
What timeframe does he envisage for an economic deal with the US while waiting for the views of UK shareholders?
Minister reply
We are deeply disappointed by the lack of exemptions but remain committed to working hard. No country is further advanced in talks, and we hope this will lead to a positive outcome.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Question
Welcomed the calm and pragmatic approach to US tariffs but asked about specific legislation such as the Online Safety Act, Digital Markets Competition and Consumers Act, and digital sales tax being part of the talks. She also questioned the government’s counter-argument to Trump's view on VAT and DST.
Minister reply
The minister responded by stating that while he cannot disclose all negotiation details, his approach is about presenting arguments clearly at the negotiating table, recognising the US position while defending UK interests. He acknowledged the complexities faced by businesses like Gooch & Housego in Torbay due to global trade tensions and assured ongoing support through information on great.gov.uk.
Marie Tidball
Lab
Penistone and Stocksbridge
Question
Asked about the Secretary of State’s commitment to steel and whether today’s news further demonstrates why it is important for this Government to be committed to a £2.5 billion plan for steel.
Minister reply
Acknowledged Dr Tidball's advocacy for British-made steel, highlighting that UK steel industries are complementary to US needs in sectors such as defence and manufacturing supply chains, which reduces the need for tariffs. The minister reaffirmed the government’s commitment of £2.5 billion plus additional funding towards supporting the foundation industries.
Martin Vickers
Con
Brigg and Immingham
Question
Asked about the timing of the consultation regarding retaliatory measures on tariffs, emphasising current uncertainties in the global steel market.
Minister reply
Explained that today’s announcement is a formal step to engage with British business following recent US announcements. He assured the hon. Gentleman of continued support for the steel industry despite ongoing challenges.
Emily Thornberry
Lab
Islington South and Finsbury
Question
Referred to Boris Johnson's claims about a potential increase in trade with US by up to five times, questioning whether the Opposition had advice or an oven-ready deal for current difficulties.
Minister reply
Responded that no substantive negotiations were concluded during previous government tenure. He emphasised the importance of seeking mutual benefits and avoiding what was announced on tariffs.
Desmond Swayne
Con
New Forest West
Question
Highlighted that tariffs diminish consumer choice, questioning whether this is liberation or antithesis.
Minister reply
Agreed with the right hon. Gentleman's point and stressed the need for a calm, reassuring, and pragmatic approach in negotiating trade relationships to avoid losing.
Andrew Cooper
Lab
Mid Cheshire
Question
Acknowledged the importance of automotive sectors like Bentley Motors in Crewe facing US tariffs, asking about specific support from the government for the industry.
Minister reply
Emphasised his pride in the UK’s automotive sector and highlighted measures such as the £2 billion collaboration with private sector in the automotive field, incentives for electric vehicle infrastructure, and changes around zero-emission vehicles (ZEV) mandate to support the industry through tough times.
Stephen Flynn
SNP
Aberdeen South
Question
Asked about controlling domestic taxation regime related to Scotch whisky exports to US markets.
Minister reply
The minister did not provide a direct response in the given context and the debate was cut off at this point.
Calvin Bailey
Lab
Leyton and Wanstead
Question
A trade war with the US will not benefit our industry or people. Will he detail what action he is taking to ensure that our air and space industry can work with European partners for peace?
Minister reply
Our defence sector is a priority, and we are engaging in industrial strategy work with Ministry of Defence colleagues. We have also increased defence spending and recognise the importance of working closely with US allies while addressing threats.
Christchurch
Question
Will he remove restrictions on producing vehicles with internal combustion engines to address domestic production losses?
Minister reply
The ZEV mandate was inherited from the previous government. We are consulting on its implications and recognise that a transition to electric vehicles is necessary for our export markets.
Kirsteen Sullivan
Lab/Co-op
Bathgate and Linlithgow
Question
What steps will he take to secure sustainable trade deals with lower tariffs and bring certainty to businesses affected by retaliatory action?
Minister reply
We are working at pace to ensure all options are on the table, providing assurances that our approach is pragmatic and will be continued. We aim for better trade terms with the US.
Twickenham
Question
Will he refuse to trade away children’s safety online by watering down the Online Safety Act 1923 in talks with Donald Trump and Elon Musk?
Minister reply
Our discussions with US counterparts are about normal trade issues, not compromising on child safety. The United States is not seeking to make our children unsafe.
Barry Gardiner
Lab
Brent West
Question
What measures will he take to combat trade leakage and encourage manufacturers to relocate to the UK for exports to the US?
Minister reply
We are vigilant about trade diversion, have safeguards in place on tariffs, and stand ready to use powers if necessary. We want businesses based in the UK serving multiple markets.
Ben Spencer
Con
Runnymede and Weybridge
Question
Will he reflect on taxes raised on domestic businesses during consultations with them?
Minister reply
We always reflect on decisions made. The Conservative party needs to present plans for funding its spending, as they did not do so in the past.
Alex Sobel
Lab/Co-op
Leeds Central and Headingley
Question
Protectionism is not the way to protect consumers and businesses. Should we ensure fair trade with other countries?
Minister reply
Our approach is consistent with Labour’s history of free trade, which makes goods cheaper for people. We seek a way through difficult announcements while maintaining our commitment to internationalism.
Dwyfor Meirionnydd
Question
Does the Secretary of State recognise that accelerating scrapping of trade barriers with Europe is economically sensible in the face of US President's economic revenge?
Minister reply
The 25% tariff on steel and aluminium will affect Wales’s machinery and transport equipment exports to the US. We need a pragmatic approach while supporting industries.
Luke Murphy
Lab
Basingstoke
Question
The MP questioned the Conservative Government's record on achieving trade deals with the US and highlighted their failure to secure progress during their time in office, despite claims of being 'first in line' for a US trade deal.
Minister reply
The minister acknowledged that no real progress was made on a federal level with the US under the previous government due to the former President's decision not to pursue trade deals. He highlighted the importance of engaging and maintaining relationships with trading partners such as the EU, India, and other global markets.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
Question
The MP expressed concerns about potential impacts on farming, textiles, whisky industries in Scotland due to tariffs. He asked what actions the Government is taking to address these issues.
Minister reply
The minister agreed that addressing these issues was crucial and mentioned plans to engage with industry representatives such as the National Farmers Union of Scotland and the Scotch Whisky Association to tackle the problem head-on.
Rachel Taylor
Lab
North Warwickshire and Bedworth
Question
The MP raised concerns about 25% tariffs on Jaguar Land Rover exports to the US and asked for steps being taken to support west midlands businesses.
Minister reply
The minister assured that he is in regular contact with JLR at senior levels, providing reassurance through a calm and pragmatic approach. He mentioned allocating £2 billion from the Budget for co-investment with the private sector.
Jeremy Corbyn
Ind
Islington North
Question
The MP inquired about secretive trade negotiations involving health interests and asked if there would be any discussions involving US private healthcare entering Britain to undermine the NHS.
Minister reply
The minister assured that no discussions have taken place regarding the NHS or similar concerns. He stated it was focused on goods and services with mutual recognition of standards.
Chris Curtis
Lab
Milton Keynes North
Question
The MP asked about specific steps to support the automotive industry, particularly in Milton Keynes.
Minister reply
The minister highlighted regulatory environment changes, funding for co-investment with private sectors (£2 billion), and improving electric vehicle charging infrastructure (£300 million).
Sorcha Eastwood
Alliance
Lagan Valley
Question
The MP sought reassurance regarding online safety inclusion in any US deal, fearing potential threats to young lives.
Minister reply
The minister stated that concerns about the inclusion of online safety in negotiations were misplaced. He emphasised the focus on goods and services regulation rather than such specific issues.
Sally Jameson
Lab/Co-op
Doncaster Central
Question
The MP asked to assure the protection of copyright for creative industries, contributing £126 billion to Britain's economy.
Minister reply
The minister affirmed the importance of protecting the economic and cultural impact of the creative sector. He emphasised a balanced approach between supporting technology and maintaining creativity.
Solihull West and Shirley
Question
The MP raised concerns about job security in the automotive sector, with 25,000 jobs at risk due to reduced exports.
Minister reply
The minister mentioned meeting companies such as Aston Martin and highlighted efforts to find a deal that removes tariff threats. He also noted recent consultations regarding regulatory changes.
Liam Conlon
Lab
Beckenham and Penge
Question
The MP expressed the importance of political and economic cooperation with European friends and neighbours alongside US relations.
Minister reply
The minister agreed on the need for cooperation, stating there was no tension between these relationships. He looked forward to progress in UK-EU relationship focusing on future interests.
Daisy Cooper
Lab
St Albans
Question
Asked about potential reductions in digital services tax as a way of placating Trump's administration, seeking assurance that this tax would not be cut.
Minister reply
Reiterated commitment to ensure fair taxation for tech companies in the UK and reiterated that specific negotiation details cannot be disclosed publicly.
Deirdre Costigan
Lab
Ealing Southall
Question
Asked for a commitment from the Secretary of State to put country first, suggesting unity across the Chamber.
Minister reply
Emphasised that putting national interest first is the approach being taken and encouraged all Members to support this unified path.
Andrew Snowden
Con
Fylde
Question
Asked about conversations with Ministry of Defence regarding US-UK defence programmes, specifically concerning fighter jets orders.
Minister reply
Acknowledged the importance of close alignment between UK and US on national security matters; assured that the F-35 order will not be used as a bargaining chip.
Peter Swallow
Lab
Bracknell
Question
Asked for assurance to businesses in Bracknell regarding the government's position on barriers to trade and efforts towards securing a trade deal.
Minister reply
Reaffirmed commitment to reducing barriers to trade, highlighting support from both UK and US businesses for this approach.
Ellie Chowns
Green
North Herefordshire
Question
Asked about the cost of negotiating a deal with the US and sought assurance that no sacrifices would be made regarding NHS, environmental or food standards.
Minister reply
Provided unequivocal assurances on standing up to bullyboy tactics from the US President and emphasised backbone in negotiations.
Melanie Ward
Lab
Cowdenbeath and Kirkcaldy
Question
Asked for further reassurance regarding impact of tariffs on Scottish exports, particularly salmon and whisky.
Minister reply
Acknowledged the importance of US market to Scottish exports; highlighted ongoing efforts through initiatives like Tartan Week in the US.
Blake Stephenson
Con
Mid Bedfordshire
Question
Asked about review of regulatory environment and ease of job creation in UK automotive sector.
Minister reply
Emphasised commitment to making it easier to create jobs in UK; acknowledged competitive pressures but highlighted top-tier productivity levels.
Johanna Baxter
Lab
Paisley and Renfrewshire South
Question
Asked for assurance against knee-jerk reactions and escalation of trade war, advocating for a calm approach to negotiations.
Minister reply
Reaffirmed commitment to constructive dialogue; acknowledged concerns from constituents but highlighted necessity of keeping all options open.
Jim Shannon
DUP
Strangford
Question
Asked about steps taken to protect Northern Ireland interests in UK internal market, following Prime Minister's commitment.
Minister reply
Emphasised urgency and importance of protecting Northern Ireland businesses; highlighted ongoing dialogues with relevant parties.
Jonathan Reynolds
Secretary of State for Business, Energy and Industrial Strategy
Question
Does my right hon. Friend agree that the US’s 20% tariff on EU goods is to be deeply regretted, as it could indirectly affect the many UK businesses that supply components to EU manufacturers that export to the US, particularly in the automotive, aerospace and pharmaceutical sectors? What discussions has he had with European counterparts about the US decision?
Minister reply
My hon. Friend is right that our concerns have to be not just about what this means for our own relationship with the United States but about the second-order impact on the UK from the trading relationship changes between the US and other key allies and markets. We are closely engaged with all partners.
Robert Jenrick
Con
Chichester
Question
In answers to questions so far, the Secretary of State seems to have dismissed the threat of the US trade negotiations to the safety of our children. I am sure he has seen the abandonment of content moderation on social media platforms and heard what Trump, J. D. Vance and Musk have said about free speech in our country: what they mean is the freedom of US social media giants to keep our children addicted to their platforms, no matter how harmful the content.
Minister reply
I want to be clear with colleagues that I cannot share details of negotiations, but it is important to focus on goods and services.
Sarah Coombes
Lab
West Bromwich
Question
What else can we do to support those businesses to continue to trade and invest with confidence?
Minister reply
That is the right approach. I welcome my hon. Friend’s support, and of course we are trying to find a way through this.
Stratford-on-Avon
Question
Will the Business Secretary reassure the whole country and commit today that he will not agree to any deal with the US that would lower food standards and undermine British farmers?
Minister reply
The UK is currently the biggest importer in Europe of US agriculture, so we should not present this as something that we do not already have. We are committed to the sanitary and phytosanitary regime.
Chris Vince
Lab/Co-op
Harlow
Question
What reassurance can the Secretary of State give to those businesses and their consumers?
Minister reply
I am grateful to my hon. Friend for his support and mention of local businesses in his area.
Seamus Logan
SNP
Aberdeenshire North and Moray East
Question
Would he be prepared to offer some sort of mitigation to businesses in the food and drink industry in the autumn statement?
Minister reply
Products from the food and drink industry form a prominent part of our economic exports, and it features heavily in all our decisions.
Aylesbury
Question
What is he doing to protect our SMEs in his ongoing negotiations with the Trump Administration?
Minister reply
Fundamentally, I want to see greater market access for small and medium-sized businesses in every part of the UK.
Tom Gordon
LD
Harrogate and Knaresborough
Question
What conversations is the Secretary of State having with colleagues in the Department of Health and Social Care about ensuring access to medtech and diagnostics in the face of increasing prices?
Minister reply
I thank the hon. Gentleman for his question. He may be aware of the biopharma conference held in the UK yesterday.
West Dunbartonshire
Question
The announcement of a 10% tariff on all products exported from the UK to the United States means that for the second time in just five years, the Scotch whisky industry could be impacted by tariffs in the industry’s largest global market.
Minister reply
I thank the Secretary of State for his statement.
Scott Arthur
Lab
Edinburgh South West
Question
I thank the Secretary of State for his statement and congratulate him on his choice of whisky; that is my favourite as well. There are no winners in this dire situation, but we have to acknowledge that the cool heads in Government have meant, at least for now, as we start this process, that the jobs of people in Edinburgh South West have been saved.
Minister reply
I warmly welcome my hon. Friend’s words and his endorsement and seconding of my whisky choice. I should say that other excellent whiskies are available; a lot of Scottish Members are present, and I do not want to offend anyone. He is right to say that businesses will need reassurance: I hope they will get that from the tone that the Government are striking today, but they will need information.
Andrew Lewin
Lab
Welwyn Hatfield
Question
I commend my right hon. Friend for the measured tone he has taken on events in Washington. Does the Secretary of State agree that now is the moment to seek the most ambitious trade deal we possibly can with the European Union, seeking deep alignment in goods and services?
Minister reply
I warmly thank my hon. Friend for his question and his support for the approach we are taking. I believe there is a competitive advantage to seek for the UK where we are able to reach agreement with the US.
Jonathan Davies
Lab
Mid Derbyshire
Question
I thank the Secretary of State for his statement and for the work he is doing as we face this challenge. I welcome the Government’s commitment to increase defence spending. That is good for not just our national security, but our economy.
Minister reply
Those are very wise words, and I am grateful to my hon. Friend for putting them on the record. Defence spending is crucial for our national security.
Hendon
Question
Thank you, Madam Deputy Speaker—a joy as ever. Does my right hon. Friend agree that the best way to stand up for Britain is through a cool, calm, collected and pragmatic approach?
Minister reply
I am extremely grateful to my hon. Friend for his question. He has articulated our approach, which is that we are not complacent or happy; we are disappointed about any tariffs being imposed on the UK.
Shadow Comment
Andrew Griffith
Shadow Comment
Businesses, workers, and their families woke up this morning with greater fear and uncertainty due to tariffs. Tariffs make us poorer by pushing up costs and suppressing demand. While the Government is committed to reaching a deal with the US, they did not secure any special favours from the White House. Our automotive manufacturers face unchanged tariffs of 25% on around £8 billion-worth of cars and auto parts exports, and steel and aluminium exports remain at 25%. The Government must urgently tackle sky-high energy costs and shelve the Employment Rights Bill to support businesses. They should also provide clarity for car makers on the ZEV mandate and keep Parliament informed about broader objectives in trade negotiations.
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