Whitehall officials will be “considering lots of different scenarios”, a Treasury minister has confirmed, amid concerns about the possible impact of tariffs under the incoming US Trump presidency.
Chief Secretary to the Treasury Darren Jones said that Donald Trump “recognises” the important relationship between the UK and the United States.
But there are fears about the potential impact on the UK economy should the US president-elect introduce tariffs as he has previously suggested.
We look forward to working closely with President Trump’s team to strengthen UK-US trading relations to support businesses on both sides of the Atlantic
Mr Trump said before his victory he would raise tariffs on Chinese goods to 60% and impose a “universal” tax of at least 10% on imports from other countries.
Asked about possible tariffs on Sky News’s Sunday Morning With Trevor Phillips programme, Mr Jones said: “Officials will be considering lots of different scenarios but the position of the Government is that we support free trade and we support the trading relationship between the United States and the United Kingdom.
“It’s a very strong, very fruitful relationship, both for us but also for the American economy and of course we want to protect that and strengthen it in the years ahead.”
He added: “And I think President-elect Trump has said that. He recognises the important relationship the US has with the UK, and that’s the basis on which we will be co-operating in future years.”
A Government source confirmed on Saturday that officials would “continue” to “take advice” to ensure that Britain was “in the best possible position”.
“We look forward to working closely with President Trump’s team to strengthen UK-US trading relations to support businesses on both sides of the Atlantic,” the source said.
Pushed further on Sunday morning for a fuller response, Mr Jones declined to comment on “sensitive hypothetical future scenarios”.
He said: “You’ll have to forgive me, I’m not a commentator, I’m a Cabinet minister. As I’ve said, it’s appropriate for officials to plan for different scenarios but you are asking me to comment on sensitive hypothetical future scenarios.”
I don’t know that (the tariffs approach) makes sense – or even that he would pursue it against allies like the UK. My gut tells me no, but if I’m China, I’m fastening my seat belt right now
But the governor of New Jersey state Phil Murphy has suggested his “gut” is telling him President-elect Donald Trump could not pursue tariffs “against allies like the UK”.
Asked about the issue, Mr Murphy, a Democrat, told the same Sky News programme: “Do I believe it? I’m not sure.
“I think if you and I were sitting and speaking about the People’s Republic of China, I’d believe it.”
He added: “I don’t know that that makes sense – or even that he would pursue it against allies like the UK.
“My gut tells me no, but if I’m China, I’m fastening my seat belt right now.”
