UK Hopes to Avoid US Tariffs – But Businesses Worry, Reports BBC
The UK government believes it has the best chance to stop new US trade taxes, says Trade Secretary Jonathan Reynolds in a BBC interview. However, British businesses—from whisky makers to drug companies—fear these tariffs could hurt sales and jobs.
What’s Happening?
The US, under President Trump, plans to impose new taxes (called tariffs) on imported goods. The UK expects to be hit too, even though officials are trying to negotiate an exemption. Reynolds told the BBC that the UK is in the “best position” to get these taxes removed later.
Why Does It Matter?
- Higher Prices: Tariffs make foreign goods more expensive in the US, which could hurt UK exports.
- Business Fears: Drug makers and whisky producers warn that new taxes could force them to raise prices or cut investments.
- Trade War Risk: If the UK retaliates with its own tariffs, it could slow economic growth.
UK’s Next Move
The government hasn’t ruled out fighting back but hopes talks with the US will work. Meanwhile, Chancellor Rachel Reeves might change UK taxes on big tech firms (like Amazon) as part of a deal.
What Businesses Say
- Pharma Industry: Sold £6.6bn of medicines to the US last year—worried about losing sales.
- Whisky Makers: The US is their biggest market (£971m in 2024). Some small brands may stop investing if tariffs are too high.
BBC’s Take
The BBC reports that while the UK hopes for a deal, businesses are preparing for the worst. If tariffs stay, prices may rise, and growth could slow.
Source: BBC
Why This Matters to You:
If you buy UK-made goods or work in exporting industries, these tariffs could affect prices and jobs. Stay tuned as the UK and US negotiate.
(Credit: BBC News for original reporting)
https://www.bbc.com/news/articles/c793n78p0v0o