Britain is actively working with the United States to avoid further escalation of a trade conflict, with the country’s Finance Minister Rachel Reeves stating on Thursday that the UK does not want to engage in a trade war with Washington.
The move comes after U.S. President Donald Trump introduced a 25% tariff on imported vehicles late Wednesday, further intensifying his global trade battle. The announcement has sparked criticism and retaliatory threats from U.S. allies, including Britain.
“We are not at the moment in a position where we want to do anything to escalate these trade wars,” Reeves told Sky News, addressing the potential for Britain to impose retaliatory tariffs. “Trade wars are no good for anyone.”
Reeves emphasized the negative impact an escalation would have not just on the UK, but also on the U.S. economy. “It would be bad for Britain, but it would be bad for the U.S. as well. That’s why we are working intensely in the coming days to secure a favorable deal for Britain,” she said during an interview. “I recognize how important this is.”
The new U.S. tariffs on cars and light trucks are set to take effect on April 3, a day after Trump plans to announce additional tariffs targeting countries contributing to the U.S. trade deficit. These measures add to previously implemented duties on steel, aluminum, and various goods from Mexico, Canada, and China.
Britain has been hopeful of avoiding tariffs, arguing that both countries experience trade surpluses with one another—an assertion based on discrepancies in trade measurement methods. Additionally, London is pursuing a technology-driven deal with Washington in an effort to mitigate the direct impact of tariffs on its own exports.
Related topic:
GameStop Stock Rises 7% After Crypto Investment Plan
GOP Nears Deal on Tax Cut Extension and Debt Ceiling Increase
