UK to convince Donald Trump not to impose trade tariffs

London, Jan 24 (PTI) The British government on Friday said it has an argument in favour of convincing US President Donald Trump not to impose tariffs on its trade with the UK.

Business and Trade Secretary Jonathan Reynolds told the BBC that the United States did not have a trade deficit with the UK on manufactured goods, which would make tariffs unnecessary.

"We've obviously got a services-based economy. The US does not have that deficit with us so if that's the logic of that position, I think we've got an argument to engage with," said Reynolds.

Tariffs are a key part of Trump's economic agenda as he assumed office for a second term earlier this week. He not only sees them as a way of growing the US economy, protecting jobs and raising tax revenue but also as leverage to pursue other policies targeted at certain countries.

He has indicated a tax on imports from China and has also threatened tariffs on Canada and Mexico. Tariffs, or higher taxes on imports to the US, would make it more expensive for companies to sell goods in the world's largest economy. However, Trump has since indicated that he "would rather not" impose tariffs, suggesting trade deals are on the table.

The US President told global executives at the World Economic Forum (WEF) in Davos this week that they could either produce their goods in the US or face widespread tariffs worth hundreds of billions or even trillions of dollars.

Reynolds, among the ministers who were in Davos to “spotlight UK’s investment offer to global business leaders”, met European Union Trade Commissioner Maros Sefcovic at the summit and went on to thank him for “incredibly positive” comments on a possible new post-Brexit agreement between Britain and the 27-member economic bloc.

"We can improve the terms of trade with the EU in a way which doesn't revisit customs unions or single markets or the arguments of Brexit, and we can do that whilst pursuing closer trade links around the world," Reynolds said.

The Labour Party had contested last July’s general election with a manifesto pledge to lower Brexit-related barriers and red tape for the export of food and farm products to the EU.

“Britain is back in business under this government, and our Plan for Change is already delivering for working people. The UK is the most connected market on earth, and we will continue to be the home for innovative businesses looking to face outwards to the world,” added Reynolds.

His Cabinet colleague, Chancellor Rachel Reeves, was also in Davos to make the case for Britain as one of the “most exciting places in the world” for investments at a time when the domestic economy is navigating a sluggish phase.

“I will not rest until the UK economy is growing and this government is delivering on its Plan for Change, so we can put more money in people’s pockets. The time to invest in Britain is now,” she said. PTI AK SCY SCY

Source: PTI