UK ‘will think twice’ on retaliating if hit by Trump tariffs, enterprise minister tells FT

(Reuters) -Britain will suppose very fastidiously about retaliating if U.S. President-elect Donald Trump’s incoming administration hits the nation with contemporary tariffs, the nation’s enterprise and commerce minister Jonathan Reynolds advised the FT in an interview printed on Friday.

Trump has floated blanket tariffs of 10% 20% on nearly all imports when he returns to the White Home in January, and has already pledged huge tariffs on Canada, Mexico and China.

“On this nation, there’s no political constituency for protectionism,” Reynolds advised the FT.

The minister mentioned that Britain might take into account retaliatory measures in some circumstances, however warned that “rising prices of products or meals on your constituents shouldn’t be enticing.”

Reynolds mentioned he hoped that Britain wouldn’t be instantly focused by Trump, and that the nation’s balanced commerce with the U.S. ought to cut back the chance of contemporary tariffs, the report added.

He additionally performed down the prospects of a conventional free commerce settlement between the 2 nations, including that Britain’s meals requirements could be “an impediment.”

British finance minister Rachel Reeves mentioned final month she would make “sturdy representations” over the significance of free commerce to Trump’s incoming administration.

Financial institution of England policymaker Megan Greene mentioned mentioned on Thursday that it was nonetheless not clear whether or not greater U.S. tariffs on items imports proposed by Trump would increase or decrease British inflation.