Trump says baseline tariffs will stay in blow to UK hopes of deal

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Key Points: Trump's Stance on Tariffs

President Trump stated that substantial tariffs on US imports will likely remain, impacting the UK's pursuit of a bespoke trade deal. He cited the significant revenue generated by these tariffs as justification.

UK's Efforts for a Trade Deal

Despite Trump's comments, Rachel Reeves, the UK's shadow chancellor, is heading to Washington to lobby for a better deal. The UK has offered concessions, including weakening online safety laws and scrapping a digital services tax, but has resisted lowering food standards.

Negotiation Details

  • Baseline tariffs currently stand at 10%, with additional 25% duties on cars, aluminum, and steel.
  • Further levies on pharmaceuticals are threatened, impacting the UK's significant exports to the US (£8.8 billion in 2023).
  • While the US Treasury secretary is reportedly prioritizing several countries for trade deals, Trump claims everyone is on his priority list.

Differing Perspectives

While the US vice-president expressed optimism for a 'great' deal, Reeves emphasized prioritizing British national interests. Kemi Badenoch, the Conservative leader, highlighted the need for a mutually beneficial deal, rejecting the idea of lowering food standards to facilitate the agreement.

British Steel

Reeves also addressed the situation surrounding British Steel, stating that the government is actively looking for a new future for the company after ousting its Chinese owner and that nationalization is an option.

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