The UK government is drawing up a list of US products that could face retaliatory tariffs following President Donald Trump’s new import taxes. Business Secretary Jonathan Reynolds has launched a consultation with UK firms about the impact of the 10% tariffs being imposed on UK exports and which American products should be targeted if negotiations fail.
May Deadline for Negotiations
If UK negotiators cannot secure a deal to reduce the 10% tariff by 1 May, the government could impose retaliatory measures on US imports. Reynolds emphasised that talks are ongoing, but warned “the UK reserves the right to take any action we deem necessary if a deal is not secured.”
Potential Targets for UK Tariffs
The government has published a 417-page list covering 27% of imports from the US, selected for their “limited impact” on the UK economy. Products range from horses and children’s clothes to crude oil, firearms and bourbon whiskey.
Economic Impact at Stake
The UK exported almost £60 billion worth of goods to the US last year. Beyond the 10% baseline tariffs, a 25% tariff has been specifically placed on UK car exports, steel and aluminium. Government forecasters estimate a worst-case trade war could reduce UK economic growth by 1% and eliminate Chancellor Rachel Reeves’ £9.9 billion fiscal headroom.
Trade Deal Progress
UK insiders claim a deal is “practically done” but uncertainty remains about Trump’s approval. Any agreement would extend beyond tariffs to cover technology, goods, services, and potentially agriculture – previously a contentious area in US-UK negotiations.
Chancellor Reeves has suggested modifying the UK’s digital services tax on tech firms as a potential concession to secure relief from US tariffs.
Political Perspectives
Reynolds claimed the lower tariffs on the UK compared to other countries (EU faces 20%) “vindicated the pragmatic approach” of the government. However, Conservative shadow business secretary Andrew Griffith countered that “the government got no special favours,” noting the UK faces the same tariffs as the Congo.
Prime Minister Keir Starmer has maintained he “will only strike a deal if it is in our national interest.” Trade experts warn that meaningful concessions on issues from EU and China trading relationships to environmental standards may be required to secure an agreement.