Tag - U.K. trade

Britain signs critical minerals deal with Trump administration
LONDON — Britain has signed a new critical minerals partnership with the Trump administration, as it seeks to diversify supply chains away from China. Foreign Minister Seema Malhotra signed the partnership in Washington with U.S. Under Secretary of State Jacob Helberg on Wednesday night. “As demand for critical minerals around the world continues to rise, this Memorandum of Understanding with the United States underscores our commitment to working as close allies to build resilient, diversified global supply chains,” Malhotra said in a statement. Under the terms of the deal, the two countries have agreed to use economic policy tools and coordinated investment to secure supplies of critical minerals and crack down on subsidized imports that risk undercutting domestic production. They will jointly identify priority projects, mobilize financing for developments, and share intelligence on investments that could threaten domestic capabilities in either country. The partnership signals a tougher stance on market distortion, with both sides pledging to protect their industries from “non-market policies and unfair trade practices” — including by working with allies on a global approach to pricing challenges. The agreement also states both sides will use existing legislative and diplomatic tools to review, deter and potentially block critical minerals and rare earths asset sales on national security grounds. U.S. and U.K. ministers are expected to convene within the next six months to take the partnership forward. The Trump administration, which has announced similar agreements with Mexico, the European Union and Japan, ultimately wants to establish a critical minerals trading bloc, first floated on Wednesday by Vice President JD Vance to 54 countries. Speaking to reporters in London on Thursday, U.K. Trade Secretary Peter Kyle said the trading bloc with Washington “makes perfect sense.” “On critical minerals, the alliances make perfect sense, as long as they take into account the specific peculiarities of domestic markets,” Kyle said.  “In all of the alliances, all of us have different needs, and all of us are producing different minerals, so we have to make sure that it’s completely cooperative, but we should be approaching it with a ‘how do you make it work?’ — rather than how to avoid it,” he added.
Investment
Markets
Tariffs
Trade
Private investment
Starmer to Carney: No new world order please, we’re British
ABOARD THE PRIME MINISTER’S PLANE TO BEIJING — Keir Starmer rejected his Canadian counterpart’s call for mid-sized countries to band together in the face of unpredictable global powers — and insisted his “common sense” British approach will do just fine. The British prime minister arrives in China Wednesday for a trip aimed at rebooting the U.K.’s relationship with the Asian superpower. He’s the latest Western leader to make the visit — which will include a meeting with Chinese President Xi Jinping — after trips by Carney and France’s Emmanuel Macron. Carney used a searing speech at the World Economic Forum last week to warn of the “rupture” caused by “great powers” acting in their own self-interest. While he did not namecheck Donald Trump’s administration, the speech riled the U.S. president, who insisted: “Canada lives because of the United States.” The Canadian PM had called for middle powers to work together to “build something bigger, better, stronger, more just.” Starmer was pressed on those remarks on board his flight to China Tuesday. Asked whether he agreed that the old global order is dead — and whether smaller powers need to team up to push back at the U.S. and China, Starmer defended his own policy of trying to build bridges with Trump, Xi and the European Union all at once. “I’m a pragmatist, a British pragmatist applying common sense, and therefore I’m pleased that we have a good relationship with the U.S. on defense, security, intelligence and on trade and prosperity,” he says. “It’s very important that we maintain that good relationship.” He added: “Equally, we are moving forward with a better relationship with the EU. We had a very good summit last year with 10 strands of agreement. “We’ll have another summit this year with the EU, which I hope will be iterative, as well as following through on what we’ve already agreed. “And I’ve consistently said I’m not choosing between the U.S. and Europe. I’m really glad that the UK has got good relations with both.” Starmer’s government — which faces pressure from opposition parties back home as it re-engages with China — has stressed that it wants to cooperate, compete with and challenge Beijing when necessary, as it bids to build economic ties to aid the sputtering U.K. economy. “Obviously, China is the second biggest economy in the world, one of our biggest trading partners,” the British PM — who is flying with an entourage of British CEOs and business reps — said Tuesday. “And under the last government, we veered from the golden age to the ice age. And what I want to do is follow through on the approach I’ve set out a number of times now … which is a comprehensive and consistent approach to China. “I do think there are opportunities, but obviously we will never compromise national security in taking those opportunities.”
UK
Security
U.S. politics
Trade
Diplomacy
Trump administration demands Britain adopt US standards in trade talks
LONDON — U.S. President Donald Trump’s trade negotiators are pushing for the U.K. to adopt American standards in a move that would derail Britain’s post-Brexit relationship with the European Union, two people familiar with the talks have told POLITICO. The U.S. is also pushing hard for the recognition of American accreditation bodies in the U.K., three other people with knowledge of the demands confirmed. The joint moves would have knock-on effects for safety-critical sectors like food, forensics, manufacturing and NHS testing, experts fear. “It’s this invisible infrastructure that no one really knows about but which keeps everyone safe — and that’s now under threat,” a person briefed on the talks told POLITICO. They, like others cited in this piece, were granted anonymity to speak freely. American negotiators have turned up the heat in trade talks with the recent suspension of the Technology Prosperity Deal, amid frustration over the pace of wider negotiations. U.K. negotiating asks on steel and Scotch whisky tariffs have also gone unanswered. Trump threatened a fresh wedge in the relationship over the weekend, vowing to impose tariffs on Britain and other European allies pushing back at his desire for the United States to own Greenland. The standards push comes as the Trump administration hollows out American watchdogs, with sweeping cuts to the Food and Drug Administration and the dismantling of the Consumer Product Safety Commission. While food standards remain a red line for the U.K. government, some figures familiar with the talks fear the U.K. could cave in on other U.S. demands. “My concern is that these red lines that have been red lines from the outset and for years are under increasing threat of being breached,” the person cited above said.   British negotiators have so far refused to back down, but U.S. negotiators “keep circling back” on these issues, another person who was briefed on the talks by both governments said. Peter Holmes, an expert on standards from the UK Trade Policy Observatory at the University of Sussex, warned that accepting U.S. demands could lead to a “race to the bottom” with the U.K. regarded as a “wild west market” internationally. A U.K. government spokesperson said: “Our historic agreement with the U.S. has already delivered for the pharma, aerospace and auto sectors, while our deal with the EU will see the removal of trade barriers including SPS, saving hundreds of millions on U.K. exports.” “We have and always will be clear that we will uphold our high food, animal welfare and environmental standards in trade deals, and negotiations will continue with both the EU and U.S. on strengthening our trading relationship,” the spokesperson added. The U.K. says it will uphold its high food, animal welfare and environmental standards in trade deals. | Geography Photos/Universal Images Group via Getty Images A spokesperson for the United States Trade Representative said the claims came from “anonymous and irrelevant sources” with “no insight into the trade discussions between the U.S. and U.K.”  The spokesperson did not contest any specific aspects of this report. They added that the two nations had successfully implemented “numerous aspects of the U.S.-U.K. EPD,” including “mutually expanding access of U.S. and U.K. beef in each other’s markets.”  “The U.S. and U.K. continue to work together constructively on finalizing remaining aspects of the EPD, including the U.K. commitment to ‘improve market access for agricultural products’ from the United States,” the spokesperson said. IMPACT ON BREXIT RESET TALKS Giving in to the U.S. demands would upset Britain’s ability to trade more closely with the EU as part of ongoing Brexit “reset” negotiations with the bloc that include alignment on food standards and carbon emissions in manufacturing. The U.K. government has “very clear red lines around all of this because they are going to do certain things with the EU,” the second person quoted above explained. “You would have thought these matters had already been well ventilated and resolved,” the person added, explaining that in talks the U.S. side “keep saying ‘why can’t you do more food standards? Why aren’t you coming closer on our side of it? Are you really sure what you’re doing with the EU is the right thing to do?’” Negotiations with the U.S. are “pretty much [in] stasis at the moment,” the same person continued. As London’s Brexit reset talks with the EU progress this year, “the possibility to have the kinds of changes that the U.S. is putting forward become much diminished when those agreements with the EU start to get over the line.” RECOGNITION OF ACCREDITATION BODIES Multiple people briefed on the trade talks claim the U.S. proposals go beyond the terms of the original U.K.-U.S. Economic Prosperity Deal agreed last May between U.S. President Donald Trump and Britain’s Prime Minister Keir Starmer.  In addition to headline commitments to cut tariffs on cars, steel and pharmaceuticals, the wide-ranging deal included a promise to address “non-tariff barriers,” including a pledge to treat conformity assessment bodies — such as testing labs and certification groups from the other nation — in a way that is “no less favorable” than the treatment of its own.  This is an increasingly common commitment in U.K. trade deals and typically means that accreditation bodies would have the power to accredit a whole range of certification and testing providers from the other country. However, U.S. negotiators are now pushing for the recognition of disparate American accreditation bodies, which would give them the authority to approve certification, testing and verification organizations in the U.K., three people briefed on the talks confirmed. Accepting this demand would mean that the U.K.’s national accreditation body, UKAS, would no longer meet the basic requirements of membership in the European Co-operation for Accreditation, under which national accreditation bodies recognize each other’s accreditations.  U.K. Prime Minister Keir Starmer says he wanted the U.K. to seek “even closer alignment” with the EU. | Leon Neal/Getty Images This would put the proposed U.K.-EU agrifood deal and plans to link U.K. and EU Emissions Trading Schemes “at massive risk,” should those deals require the EU to recognize U.K. emissions verification bodies and food control laboratories, the first person cited above explained. An industry figure familiar with the ETS linkage talks said an acceptance of the changes would amount to a “watering down” of the entire carbon pricing system, adding that “every single company falling under UK ETS” would be “absolutely furious.” It could also jeopardize any future alignment with the EU in other areas such as manufactured goods, a second industry figure briefed on the negotiations said.  The U.K. government has indicated a willingness to go even further in its relationship with the EU, with U.K. Prime Minister Keir Starmer saying he wanted the U.K. to seek “even closer alignment” with the single market.  Beyond plans outlined in the Common Understanding last May, “there are other areas where we should consider if it’s in our interests to … align with the single market,” he told the BBC in a recent interview. “Now that needs to be considered on an issue-by-issue, sector-by-sector basis, but we’ve already done it with food and agriculture, and that will be implemented this year.” ‘RACE TO THE BOTTOM’ The U.S. operates a decentralized standards system in which accreditation is carried out by a competitive network of organizations, most of which are commercial. This is in direct contrast to the U.K.’s current model of accreditation, whereby a single, non-profit accreditation body, UKAS, oversees certification and product testing in the public interest. The UK Trade Policy Observatory’s Peter Holmes warned that adopting the U.S. system could lead to a “race to the bottom”, with UKAS pitted against American accreditation bodies. “They might have to cut corners and give up their legally-required public service obligations,” he said.  Accepting U.S. accreditation bodies would make the U.K. a “wild west market where you can’t trust anything that’s on sale in the U.K.,” he added. The U.K. government has repeatedly rejected the possibility of changes to British standards, including the possibility of accepting American chlorine-washed chicken and hormone-treated beef.  “We will not compromise on food standards,” Trade Minister Chris Bryant said in an interview with CNBC this month. “That is the beginning and end of everything I have to say on that subject. Food standards are really important. There is no compromise for us to strike there.”
Agriculture
Rights
Services
Technology
Industry
UK and US restart steel talks ahead of Trump’s state visit
LONDON — British and American officials have restarted talks on steel tariffs in the run-up to U.S. President Donald Trump’s state visit next week. After months of radio silence over the summer, negotiations to implement new quotas lowering the duties on steel and aluminum exports to the U.S. began again earlier this month, two people close to the talks told POLITICO. It comes as Donald Trump prepares to travel to the U.K. for a historic second state visit, with British officials hoping to use the occasion to push for a breakthrough on tariffs as well as a long-coveted tech partnership. Britain’s steel and aluminum makers have faced 25 percent tariffs at the U.S. border since March. While U.K. firms dodged Trump’s doubling of those duties in the spring, negotiations to lower tariffs further — as promised in May’s trade pact — have been slow-moving. The talks are also politically sensitive for Britain’s governing Labour Party, which is facing pressure from the insurgent Reform UK party in the country’s industrial heartlands. “We know they’ve been talking about steel again and looking at the U.K.’s proposal on quotas,” said one of the people familiar with the negotiations. Like others quoted in this report, they were granted anonymity to speak freely about ongoing talks. Mike Kemp/In Pictures via Getty Images U.K. trade officials “really want to get something over the line,” said the second person familiar with the talks, noting that the discussions were “quite advanced before the pause over the summer began.” ‘RAPID DISCUSSIONS’ During a split-screen Oval Office phone call in May, Trump and Prime Minister Keir Starmer announced an agreement promising “rapid discussions” to secure a quota for U.K. exports of the metals. The deal would allow a certain amount of steel, aluminum and their derivative products to pass from the U.K. into the U.S. at tariff rates significantly lower than 25 percent. When Trump visited Scotland in July, he said a reduction in his tariffs on U.K. steel and aluminum would come “pretty soon.” But five months after the May deal was signed, the U.K. is still lobbying U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to get the White House to put those quotas in place. “The longer this goes on, the more uncertain it is, the more damaging it is, the less likely we are going to get growth, and the more threat there is to the jobs that are associated,” said Chris Southworth, head of the International Chamber of Commerce UK. There is “a great opportunity” to conclude the steel talks on the fringes of the state visit, Southworth added. “We need a solution quickly.” MELT AND POUR RULES The U.S. has strict rules on imports of steel and aluminum, meaning the metals must be melted and poured in their country of origin to qualify for tariff relief. But the requirements have been a tall order for Britain’s steel sector after its largest exporter to the U.S. — Tata Steel UK’s Port Talbot steel mill — shut last September. The firm is switching to greener arc furnaces which aren’t expected to start operating until 2027. In the meantime, the firm has been importing steel from its plants in India and the Netherlands. “I don’t think these are unmanageable issues,” said a person briefed by the White House. “If the U.K. can figure out how to agree to the ring-fencing demands of the U.S., then I think it should be pretty easy.” Mike Kemp/In Pictures via Getty Images One solution, they said, “could be they just have a lower … quota to protect against the Indian steel coming through, and then have an agreement to raise it automatically once [Tata’s Port Talbot site] comes back online.” Trump’s state visit is “exactly the kind of opportunity to make an announcement in front of the TV cameras,” the first person quoted above said. “If it’s not now, I worry about when it will ever happen.” “We are committed to going further to give industry the security they need,” said a U.K. government spokesperson. “We will continue to work with the US to get this deal implemented as soon as possible and in industry’s best interests.”
UK
Security
Industry
Negotiations
Tariffs
UK government to slash 600 overseas trade jobs
LONDON — Britain’s business and trade ministry is preparing to cut 600 roles from its overseas network, raising concerns about the government’s ability to support British exporters abroad. The ministry is also reeling from a sweeping Cabinet reshuffle, with all of its previous ministers moving into other departments or leaving government over the weekend. It comes as the U.K. navigates a rapidly shifting global trade order and battles to attract investment to drive the government’s growth agenda. The overseas cuts are part of a broader plan to reduce the Department for Business and Trade’s headcount by 20 percent — with most redundancies expected before April 2027. A figure familiar with the developments said staff are concerned about the pace and scale of the cuts.  While a Voluntary Exit Scheme ran in June, uptake fell short of the department’s target, according to the person. Permanent Secretary Gareth Davies is now refusing to rule out compulsory redundancies. James Manning, a former U.K. trade negotiator, said: “While efficiencies are clearly needed given the fiscal challenges facing the government, reducing the U.K.’s overseas trade policy and promotion staffing at a time when the global trade system is under extreme strain is a clear risk.” He added that “it will likely make it harder for ministers’ to deliver on their pledge to boost support to U.K. exporters, as set out in the Trade Strategy published earlier this year.” Some export promotion work is expected to shift to foreign office staff, with diplomats asked by former Foreign Secretary David Lammy to promote the U.K. overseas.  But Manning, now a director at FTI Consulting, warned: “Given the UK’s trade expertise has been highly concentrated in the Department for Business and Trade and its predecessor departments, it is also unlikely that the FCDO will be able to immediately plug the capability gaps this will inevitably create.” THREAT OF OFFICE CLOSURES  DBT is also threatening the closure of nine regional offices outside London — with planned consultations due to begin. These include Bristol, Cambridge, Glasgow, Guildford, Ipswich, Leeds, Newcastle, Nottingham, and Titchfield.  The Guildford office has already closed, while the Bristol and Titchfield offices are set to shut in early 2026, according to the person cited above. These regional offices help local businesses access government support and promote trade and investment in the region.  PCS General Secretary Fran Heathcote said the government has done this “without even a nod to union consultation and without offering any kind of rationale.” She called the 20 percent reduction of staff “a personal disaster for many of our dedicated members as well as for the effectiveness of the department.”  “Any agreed future changes must be transparent and implemented carefully to help allay the serious anxiety that DBT staff are feeling,” she urged.  The Department for Business and Trade said no final decision had been taken on where cuts would fall, adding it is standard practice to review agreements when office leases come up for renewal.  “As part of Government plans to reshape the state and deliver our Plan for Change, DBT will support a leaner and more efficient Civil Service, helping to reduce administration costs by 15% by the end of the decade and to avoid duplication across departments,” said a DBT spokesperson. “In line with these plans, we propose to reduce the Department in size, but we will look to avoid redundancies wherever possible.”
UK
Department
Services
Growth
Investment
UK automakers to secure US tariff relief by end of June
KANANASKIS, Alberta — U.S. President Donald Trump has agreed to lower tariffs on British autos from 25 percent to 10 percent by the end of June, after signing a U.K.-U.S. trade deal with Keir Starmer. Brandishing the signed copy of the deal, after originally dropping the papers on the ground, Trump said the deal would “produce a lot of jobs, a lot of income.” However, the final agreement — signed at the G7 summit in Kananaskis, Canada — has omitted a key part of the original deal. Steel and aluminum tariffs will, for now, remain at 25 percent instead of dropping to 0 percent as originally agreed. British officials say the two sides will continue to negotiate on cutting these tariffs. Standing beside Trump, Starmer said: “This now implements on car tariffs and aerospace of our really important agreement, and so this is a very good day for both of our countries.” Trump also appeared to suggest Britain will be protected from further universal tariffs. He said: “The U.K. is very well protected, you know why? Because I like ‘em, that’s why. That’s their ultimate protection.” Outlined in a U.S. order, the deal will see the Trump administration commit to carving out exemptions for U.K. aerospace goods, such as engines and similar aircraft parts, from the baseline 10 percent tariff on most U.S. imports. U.K. aerospace parts are also set to be excluded from any further tariffs imposed on the sector following a national security review by the Trump administration. U.K. Trade Secretary Jonathan Reynolds signaled last week that negotiations to lower U.S. tariffs on U.K. steel and aluminum could take longer. The focus of current discussions is “not about who owns it — it’s the melt and pour rules,” he told reporters, referring to rules which would mean that steel must be melted and poured in the U.K. to qualify for tariff relief. Both countries will also remain focused on securing preferential outcomes for further tariffs the White House might impose on pharmaceuticals as part of Section 232 investigations. Reynolds said: “Bringing trade deals into force can take several months, yet we are delivering on the first set of agreements in a matter of weeks. And we won’t stop there.”
Security
Mobility
Health Care
Negotiations
Cars
Das Update vor dem Telefonat von Trump und Putin
Listen on * Spotify * Apple Music * Amazon Music Die Welt wartet auf das Gespräch zwischen Donald Trump und Wladimir Putin an diesem Nachmittag. Gordon Repinski spricht mit Hans von der Burchard. Er war für POLITICO den ganzen Tag im Regierungsviertel unterwegs und hat sich dort über die neuesten Entwicklungen vor dem Termin informiert. Er berichtet von der ebenso erwartungsvollen wie angespannten Stimmung in diesen Stunden. Johanna Sahlberg fasst die wichtigsten Ergebnisse des EU-UK-Summits zusammen, die soeben vom britischen Premier Keir Starmer und EU-Kommissionspräsidentin Ursula von der Leyen vorgestellt worden sind. Beide Seiten wollen ihre Beziehungen neu starten. Wie das nahezu alle Themen von Verteidigung bis Fischerei betrifft, hört ihr von Johanna. Mehr zum EU-UK-Summit lest ihr auch in unserem Newsletter ‘Brussels Decoded’. Das Berlin Playbook als Podcast gibt es morgens um 5 Uhr. Gordon Repinski und das POLITICO-Team bringen euch jeden Morgen auf den neuesten Stand in Sachen Politik — kompakt, europäisch, hintergründig. Und für alle Hauptstadt-Profis: Unser Berlin Playbook-Newsletter liefert jeden Morgen die wichtigsten Themen und Einordnungen. Hier gibt es alle Informationen und das kostenlose Playbook-Abo. Mehr von Berlin Playbook-Host und Executive Editor von POLITICO in Deutschland, Gordon Repinski, gibt es auch hier:   Instagram: @gordon.repinski | X: @GordonRepinski.
Politics
Defense
U.S. foreign policy
War in Ukraine
Der Podcast
UK tries to hose down fears about India trade deal
LONDON — The new U.K. trade deal with India does not undercut British workers, a government minister insisted Wednesday, amid a bitter political row about the long-sought agreement’s labor provisions. Speaking to the BBC, Trade Secretary Jonathan Reynolds defended exempting some temporary Indian workers and their employers from paying the U.K.’s national insurance employment tax — and argued this would not disadvantage their British counterparts. “There is no situation where I would ever tolerate British workers being undercut through any trade agreement we would sign,” Reynolds said. “That is not part of this deal.” The trade secretary instead attacked his Tory critics — who have dubbed the measure a “two-tier tax” — and said they had failed to understand the reality of the deal. When “a business in India seconds someone for a short period of time to the U.K., or a U.K. business seconds a worker to India for a short period of time … you don’t pay in simultaneously now to both social security systems,” Reynolds said. Reynolds highlighted existing agreements with 50 countries including the U.S. and Canada — and pointed out that the last Conservative government signed an agreement with similar provisions with Chile. The Double Contributions Convention agreed with India came as part of a wider trade deal that the U.K. has talked up as offering a much-needed boost to the country’s stagnant economy. An economic forecast by the British government suggests the deal will increase the U.K.’s GDP by £4.8 billion by 2040. The labor agreement with India is reciprocal, meaning British short-term visa holders also won’t pay social security taxes in India. SEC Newgate’s Allie Renison, an ex-government trade adviser, said: “This is a deal to avoid double taxation from falling on short-term workers in specific skilled occupations.”  She added: “The fundamental underlying principle is that temporary workers posted to each other’s jurisdictions by their companies should not have to contribute to two parallel social security schemes at the same time.”  Under the agreement, an existing visa route for some temporary workers will now be open to Indian employees, though applicants will still need to meet the usual requirements on salary and skills and a cap on overall numbers remains in place. Conservative Leader Kemi Badenoch, who said she had refused to sign a similar deal back when she was trade secretary, was quick to leap on the row. She accused Labour of double standards at a time it has hiked taxes on British employers, and charged Wednesday night: “When Labour negotiates, Britain loses.” Nigel Farage, whose right-wing populist Reform UK ate into both Labour and Tory votes to top last week’s local elections in England, branded the deal “astonishing.” He added: “I cannot believe the sheer stupidity of this Labour government. No wonder it was announced after the elections last Thursday.” Stefan Boscia contributed reporting.
UK
Politics
Elections
Security
British politics
Macron invited to UK state visit in May — ahead of Trump
U.K. King Charles III has invited French President Emmanuel Macron for a state visit in May, months before a visit by U.S. President Donald Trump that is expected to take place in September, The Sunday Times reported. The first state visit by the French leader is being planned amid British Prime Minister Keir Starmer’s efforts to relaunch relations with the European Union years after Brexit, while the U.K.’s historic American allies drift away and turn looking inward under Trump’s presidency. Macron and Starmer have in recent months led a “coalition of the willing” composed by European countries seeking to agree on security guarantees for Ukraine in case a ceasefire is achieved with Russia. As Macron schmoozes with the king in Windsor Castle, the U.K. and the EU are expected to seal a defense and security pact at a London summit on May 19 to boost military spending across Europe. While defense has served as the first steppingstone in efforts to rebuild EU-U.K. ties, its implications on trade loom large, as the pact could pave the way for further negotiations such as an agri-food standards agreement to reduce trade bureaucracy and EU plans like improved mobility for young people and students. In fact, defense pact is hinging on whether the U.K. will make concessions on fishing rights in English waters for EU fleets. Both sides are expected to use next month’s meeting to reach a common understanding of which issues will be part of Starmer’s wider U.K.-EU relations relaunch. On the other side of the Atlantic, Trump recently suggested he would visit Britain in September, after Starmer extended an invitation by King Charles during his visit to Washington in February. Trump has in recent weeks slapped hefty tariffs on countries around the world, including 10 percent duties for U.K and EU products across the board. The U.S. president hit the pause button on other heavier reciprocal tariffs to give space to negotiate new trade deals.
Politics
Agriculture
Defense
U.S. foreign policy
U.S. politics
Britain does not deny concessions on agriculture in UK-US talks
LONDON — British officials have not denied that a potential trade deal with the United States would include concessions on agriculture. The U.S. administration is planning to unveil so-called reciprocal tariffs on trading partners on Wednesday, dubbed “Liberation Day” by U.S. President Donald Trump. According to The Times, an economic deal with the U.S. is “on the table and ready to sign,” and would include the lowering of tariffs on imports of U.S. beef, chicken and other meat. Two U.K. officials refused to rule that out when approached by POLITICO on Tuesday. But hopes have faded the U.K. will be able to secure carve-outs before the tariffs take effect. While food standards remain a red line in negotiations, which are expected to continue beyond Wednesday, giving U.S. producers greater access to the U.K. market would put Britain’s farmers — already infuriated by tax changes — under further pressure. In an interview with Times Radio on Tuesday morning, U.K. Trade Secretary Jonathan Reynolds said food standards were a “red line” for the U.K., suggesting Britain would not accept hormone-treated beef and chlorine-washed chicken, a major sticking point in previous negotiations. “That’s a really important area and [one] we wouldn’t be able to negotiate on and the U.S. understands that position as do other countries,” he said. “So of course there’s a set of things you talk about and some things that you can’t. I absolutely believe an agreement is possible with the U.S.” The U.K. is currently negotiating a new economic pact with the European Union which would prevent it from lowering its food standards. However, Reynolds indicated that digital services tax could be on the table in a potential deal, describing it as “temporary imposition in lieu of a wider international agreement.” UK WON’T WALK AWAY FROM TALKS During the interview, Reynolds conceded that tariffs would hit the U.K. before it could agree a deal with the U.S. “I believe from where we are at the minute, the president wants this ‘Liberation Day’ tomorrow to apply to every country in the world and there’ll be no exemptions on that first day towards that,” he said. “If any country is able to reach an agreement with the U.S., I don’t believe there’s a country better placed than the U.K. because of the work that we have been doing.” But he insisted that April 2 was “not a deadline,” adding, “If they take action tomorrow, that is not a reason to walk away from the potential to secure an agreement.” The minister also said free speech had not been a “material factor” in trade negotiations with the U.S. Commerce Department or the Office of the US Trade Representative. U.S. Vice-President JD Vance has previously accused European countries, including the U.K., of violating free speech. Speaking at a press conference during U.K. Prime Minister Keir Starmer’s visit to Washington DC last month, Vance said there had been “infringements on free speech” in Britain, which “also affect American technology companies and, by extension, American citizens.”
Agriculture
Department
Services
Technology
Negotiations