During a recent event in the White House Rose Garden, President Trump announced sweeping tariffs, including a 10% tariff on UK imports and a 25% duty on all car imports globally, claiming these measures would benefit American taxpayers and restore jobs.

Criticism arose from Conservative shadow business secretary Andrew Griffith, who described the tariffs as 'disappointing news' for UK families and attributed the situation to the government's ineffective negotiation strategies.

In response, UK Business Secretary Jonathan Reynolds expressed disappointment over the tariffs but emphasized the strong friendship between the US and UK, highlighting the importance of their economic relationship.

Reynolds reiterated the UK government's commitment to negotiating a favorable economic deal with the US to strengthen their trading relationship and mitigate the impacts of the tariffs.

According to Capital Economics, the UK's 10% tariff could potentially reduce its GDP by between 0.01% and 0.06%, with additional duties on car imports expected to exacerbate the economic impact.

Despite the government's efforts to negotiate a deal to avoid these tariffs, ongoing discussions have yet to yield results, and officials remain focused on securing a sustainable trade agreement.

Reynolds acknowledged that while the UK government has various tools at its disposal to respond to the tariffs, it aims to avoid a trade war, insisting that 'nothing is off the table' regarding potential future actions.

Liberal Democrat leader Sir Ed Davey condemned the tariffs as a 'destructive trade war' and called for a coalition among Commonwealth and European partners to counteract them.

Reynolds emphasized that the UK has several options available to respond to the tariffs, reiterating that while nobody wants a trade war, the government is prepared to act if necessary.

This announcement, referred to as 'Liberation Day', marks a significant shift from established global trade norms and raises concerns about the potential for a worldwide trade conflict.

Overall, the relationship between the US and UK is not only economically significant but also crucial for security and political alliances, underscoring the need for effective negotiations moving forward.

Griffith warned that these tariffs could jeopardize the UK chancellor's emergency budget and negatively impact British businesses and workers, urging ministers to return to negotiations.