Foreign Secretary David Lammy said the UK must “prepare for the worst” on US tariffs as “intense conversations” continue on a possible economic agreement.
Mr Lammy added businesses in the UK need the “best support” at what will be a “turbulent economic time”, with US president Donald Trump preparing to announce import taxes on goods from countries around the world on Wednesday.
Mr Trump has previously announced a 25% import tax will be introduced on all cars imported to the US.
Speaking in the Commons, Liberal Democrat foreign affairs spokesman Calum Miller (Bicester and Woodstock) said: “My constituents at the BMW Mini plant in Cowley are deeply concerned about the impact of Donald Trump’s global tariff war.
“The uncertainty the plant faces is made much worse by the red tape that now inhibits integrated car production with suppliers in the EU.
“So does the Foreign Secretary agree that in addition to a robust response to the White House, the best step the Government can take to support British businesses would be to start talks on a bespoke UK-EU customs union without delay?”
Mr Lammy replied: “We are an open trading nation. We have been that under successive governments.
“It’s hugely important at this time that we continue the intense conversations we’re having with the US administration on getting an economic agreement but of course we prepare for the worst – all options remain on the table, as the Prime Minister indicated again just yesterday.
“But it’s also right that the Business Secretary and I and others across government continue to engage with business and industry so we can give them the best support at what will be a turbulent economic time, not just for our own country but of course much of the world.”
Shadow foreign secretary Dame Priti Patel earlier asked for details on the role the Foreign, Commonwealth and Development Office (FCDO) is playing in supporting trade negotiations with the US.
She asked: “What discussions has the Foreign Secretary personally undertaken about the trade agreement and can he confirm this will be a comprehensive trade deal that the Conservative government was negotiating?”
Mr Lammy replied: “No, because the Conservative government badly failed in their negotiations with the US.
“We are engaged in intense conversations to strike an economic agreement at this time. We continue discussions with our Indian counterparts also on a trade deal and with the Gulf, picking up the failure of the last government to land the trade deals that would deliver growth to this country.”
Dame Priti went on to accuse the Government of continuing to “cosy up to the Chinese Communist Party (CCP)” because they are desperately seeking growth”.
She said: “With the Government unable and unwilling to stop solar panels being made by Uighur slave labour coming into the UK, unable to stop China putting bounties on the heads of Hongkongers living here, failing to put China on the enhanced tier of Firs (Foreign Influence Registration Scheme), can the Foreign Secretary explain how our economic and security interests have been served by the Labour Government’s alleged reset with the CCP government?”
Mr Lammy replied: “(Dame Priti) uses the phrase CCP almost as if it to suggest that I’m some sort of Communist.
“Look, the last government had 17 different approaches to China on counting, it bounced around so much there was the Iain Duncan Smith position, the Rishi Sunak position, the Liz Truss position, we’ve lost count of how many positions.
“We’ve been clear that there are areas where we will cooperate with China, there are areas where we will challenge China and there are areas where we must necessarily compete.
“It’s right that we engage with China. Closing our ears, pretending they’re not there is no strategy and that’s why the Government absolutely changed the strategy of the last government.”
