Asked by: Lord Higgins (Conservative - Life peer)
Question to the Department for International Trade:
To ask Her Majesty's Government to what extent they were involved in the EU decision to impose retaliatory tariffs on imports of United States products into the UK; whether they supported that decision; and what estimate they have made of the effect of such tariffs on consumer prices in the UK.
Answered by Baroness Fairhead
We are deeply disappointed that the US has taken this unjustified decision, particularly on grounds of national security. These unilateral trade measures have weak foundations in international law, and they are not consistent with the US Department of Defence’s own judgment in an investigation that was conducted on the basis of national security.
The UK has been involved throughout EU discussions on addressing the potential trade imbalances that these measures could create. The Government supported these measures in the Trade Barriers Committee on 14 June, alongside all other Member States.
It is not possible at this stage to estimate accurately the effect of these tariffs on consumer prices. Countermeasure tariffs will make imports of these products from the US more expensive for consumers and user industries, however US businesses may choose to absorb the cost of increased tariffs rather than pass them onto consumers. This could induce consumers and users to switch to alternative suppliers or reduce their consumption. This would reduce US exports of these products to the EU and UK.