Jonathan Reynolds will urge Donald Trump’s administration to exempt British metal from punitive tariffs as he embarks on high-stakes commerce negotiations in Washington.
On Tuesday, the Enterprise Secretary will change into the primary UK minister to carry direct talks with the brand new Trump administration, aiming to safe essential exemptions from the US president’s world tariff regime.
Mr Reynolds is about to fulfill Howard Lutnick, the US Commerce Secretary, and Jamieson Greer, the US Commerce Consultant, to discover a broader financial deal between Britain and America—one which he hopes will embrace reduction for the UK’s metal business.
His go to follows Mr Trump’s latest determination to impose 25% tariffs on all metal and aluminium imports, with a promise of additional “reciprocal” tariffs taking impact from 2 April. The White Home has additionally introduced plans to issue native VAT costs into its calculations for these tariffs—a transfer that might hit UK exports arduous, given Britain’s 20% VAT price.
A combat to guard UK business
Mr Reynolds has pledged to lift the metal tariffs concern throughout his discussions with Trump officers, emphasising the significance of safeguarding British industries.
“Protecting and growing the industries that power the UK and play a key role in delivering our Plan for Change is a priority for this Government,” he mentioned. “Today’s visit to Washington DC is the latest step in our pragmatic and positive engagement with the new administration to agree a wider economic deal in both our interests.”
Sir Keir Starmer has to date resisted calls to impose retaliatory tariffs on US items however has not dominated out such measures. A spokesperson for the Prime Minister mentioned: “In the case of world tariffs, we’re assessing all choices. Because the Prime Minister mentioned final week, we’re holding all choices on the desk, however we’re going to take a realistic strategy to this, and we’ll be persevering with discussions.
“As many in industry have said, they do not want to see an escalating trade war. Standing up for UK business means finding a solution, not exacerbating tensions.”
Gareth Stace, director common of UK Metal, strengthened the urgency of securing exemptions, stating: “The UK is a close ally of the US, not a foe. Securing a full exemption from these tariffs must be a priority. The focus should be on working together to find solutions, not creating new barriers. That is the message we urge Jonathan Reynolds to take with him to Washington.”
Commerce specialists warn that attaining a deal could require vital UK concessions.
David Henig, director of the UK Commerce Coverage Challenge, mentioned: “The real problem is that we don’t actually know what the US wants. I don’t think the Government knows exactly what the deal might be.”
US officers have hinted at calls for in a number of areas, together with VAT costs, Britain’s £700m digital providers tax, synthetic intelligence rules, and meals manufacturing requirements.
Potential modifications to meals import guidelines—reminiscent of permitting chlorine-washed rooster, beforehand a purple line for UK negotiators—would possible face fierce opposition from farmers, significantly within the wake of Chancellor Rachel Reeves’s latest inheritance tax reduction reforms on agricultural land.
“Politically, it would look terrible. The Government said they wouldn’t do it, and I just don’t see how any government could,” mentioned Mr Henig.
He recommended that probably the most politically viable concession is perhaps loosening rules on synthetic intelligence, a transfer that may very well be framed as an financial progress technique quite than a direct trade-off.
The urgency of securing a deal was underscored by recent OECD forecasts on Monday, which downgraded the UK’s financial progress projections.
The Paris-based organisation revised its GDP progress forecast for Britain to 1.4% this 12 months and 1.2% in 2026, down from earlier estimates of 1.7% and 1.3%. The OECD cited Trump’s commerce conflict as an element exacerbating financial uncertainty worldwide.
As Mr Reynolds begins negotiations in Washington, the stakes are excessive—not only for Britain’s metal business, however for the broader UK economic system’s potential to navigate an more and more protectionist world commerce panorama.
