UK working to secure tariff exemption amid U.S. trade war escalation- FM

Published 27/03/2025, 10:36
© Vuk Valcic / SOPA Images/Sipa US via Reuters Connect

Investing.com -- The United Kingdom (TADAWUL:4280) is intensifying efforts with the United States to secure an exemption from tariffs, aiming to avoid escalating the ongoing trade war, according to the country’s finance minister, Rachel Reeves.

Her comments come in response to U.S. President Donald Trump’s recent decision to impose a 25% tariff on imported vehicles, a move that has drawn criticism and retaliation threats from affected U.S. allies.

Reeves, in an interview with Sky News, stated that the UK is not currently seeking to escalate the trade wars, emphasizing that such wars are detrimental to all involved parties. She further noted that an increase in tariffs would have negative impacts not only for the UK but also for the U.S.

The finance minister stressed that the UK is diligently working to secure a beneficial deal in the coming days.

The U.S. administration said yesterday that it is set to implement new levies on cars and light trucks effective April 3, following an announcement of reciprocal tariffs targeting countries contributing significantly to the U.S. trade deficit.

These tariffs are in addition to those previously introduced on steel and aluminium, as well as goods from Mexico, Canada, and China.

The UK has been hopeful of avoiding tariffs with the U.S., pointing out that both nations report trade surpluses with each other across goods and services, due to measurement differences. 

As part of its efforts, London is also seeking to negotiate a tech-focused deal with Washington, with the aim of potentially avoiding direct tariffs on its own exports.

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