The UK government has warned it will not hesitate to retaliate if the United States imposes tariffs on car imports, according to sources from Downing Street. The warning comes as last-minute negotiations continue ahead of a planned 25% tax on car imports and potential additional tariffs on other goods set to take effect on April 2.
While Prime Minister Sir Keir Starmer is committed to avoiding a trade war, the UK is pushing for an exemption by highlighting its balanced trading relationship with the US. Government sources indicate negotiations for an exemption would continue beyond the April 2 deadline, with one official stating, “We won’t stop trying.”
Should US tariffs proceed, the UK’s response remains uncertain, though options include targeted duties on American sectors heavily reliant on British products. Specific measures could involve imposing tariffs on iconic American products such as Harley-Davidson motorcycles. One expert told the BBC that the “nuclear option” would be targeting financial services—a move deemed unlikely.
Despite these threats, UK ministers remain focused on diplomacy. Prime Minister Starmer emphasized that the government would be “pragmatic and clear-eyed” in seeking a resolution through intense negotiations rather than escalating tensions.
The independent Office for Budget Responsibility has warned that a reciprocal trade war could cost the UK billions in economic growth, threatening the government’s fiscal targets. Dame Meg Hillier, chair of the Commons Treasury Select Committee, cautioned that the government’s commitment to free trade will face a stern test in the coming weeks.
US President Donald Trump has defended the tariffs, claiming the 25% levy would stimulate “tremendous growth” in the US auto industry by protecting American jobs. However, critics argue the move could disrupt domestic car production, raise consumer prices, and strain relations with key allies.
The planned tariffs have drawn sharp criticism from international leaders. German Economy Minister Robert Habeck called for a firm EU response, while French President Emmanuel Macron dismissed the tariffs as a “waste of time,” urging Trump to reconsider.
The Society of Motor Manufacturers and Traders (SMMT) expressed disappointment, highlighting the importance of the US market, the second-largest destination for UK car exports valued at £7.6 billion annually. The US imported around eight million cars last year—about $240 billion in trade—primarily from Mexico, South Korea, Japan, Canada, and Germany.
As negotiations continue, the UK remains determined to secure an exemption while preparing for potential retaliatory measures if tariffs are imposed.
bbc.com
