This comes as the UK is seeking an exemption fromthe tariffs, which the Trump administration plans to apply, on imports into the US starting April 2 — a day Trump has labeled as “Liberation Day.”
The US has announced a 25% import tax on all cars imported into the country, which is expected to affect British luxury car makers such as Rolls Royce and Aston Martin.
The levy is in addition to a series of tariffs set to be announced on April 2, which could include a general 20% tax on UK products in response to the rate of VAT.
New US car tariffs spark global backlash
Will the UK retaliate?
Starmer has stated that the UK “reserves the right” to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached.
However, the UK’s Office for Budget Responsibility (OBR) has warned that the impact of imposing reciprocal tariffs on the US would be worse for the UK than allowing the levy to go ahead without response.
The UK has so far not retaliated after the US imposed tariffs on its steel industry.
Successive UK governments have attempted to seal a trade deal with the US ever since Britain left the European Union in 2020.
Abolishing or reducing the digital services tax on US big tech firms, including social media companies, search engines and online marketplaces, is reportedly being considered as part of the negotiations.
UK PM Starmer meets Trump in Washington
Edited by: Srinivas Mazumdaru
