Tariffs: Canada and Mexico

Lord Sharpe of Epsom Excerpts

Tuesday 4th March 2025 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, as I said, we are committed to working with both the US and EU to remove barriers to trade and to help UK businesses grow. It is obviously very early days, and we will continue to take a cool-headed approach to any possible tariffs. We remain prepared to defend the UK’s national interest where it is right to do so.

[Lord Sharpe of Epsom (Con)]

My Lords, it is very welcome to hear the Minister talk about the national interest, because the importance of a trade deal with the US obviously cannot be overstated. Indeed, the British Chambers of Commerce estimates that if a deal could be reached it would provide business with a stable basis for up to £1.5 trillion of bilateral investment between the two countries. The Prime Minister has said, very wisely, that he is neither with the EU nor the USA, but the EU would seem to be taking a different view. A spokesman said that we need to make up our mind who we are with. Given the regulatory differences between the two entities, what steps are His Majesty’s Government taking to ensure that closer alignment with the EU does not hinder progress towards a comprehensive trade agreement with the US?

[Baroness Jones of Whitchurch (Lab)]

My Lords, as I said, we are committed to working with both the US and the EU to remove barriers to trade and to help UK businesses grow. The noble Lord is quite right to draw attention to the fact that the US is one of our largest trading partners, with trade worth around £300 billion in September 2024, representing 18% of total UK trade. We have a long and deep relationship with the US, and we will obviously want to enhance that as the trade discussions continue.