UK-US Trade and Tariffs

Ben Spencer Excerpts

Thursday 3rd April 2025 Commons Chamber

[Jonathan Reynolds]

I am grateful to my hon. Friend for raising one of the most important issues we face: the impact of trade diversion—not just the relationship between the US and the UK, but what it means for goods that potentially would have gone to other countries coming to the UK market. That is something we have to be extremely vigilant about. He will know that we have those safeguards in place on the tariffs already announced on steel and aluminium, and that we have our own quotas and 25% tariff to protect domestic production to ensure that that is not the case. I can tell him that we stand ready to use those powers for any sector of the economy that we need to use them for, or indeed to take further powers if that is deemed to be necessary.

I want businesses to be based in the United Kingdom and to serve a whole range of markets from the United Kingdom. That pitch is not just about the comparative position we find ourselves in, but about the kind of policies we put in place to ensure we have the level of competitiveness we need. That is something that every country in the world is engaged in, but I assure my hon. Friend—not so much on the announcements last night, but on the wider agenda of the Government—that that is our commitment.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Tariffs are a tax on import paid by domestic businesses. As the Business Secretary reflects over the forthcoming weeks and consults with businesses, will he reflect on the taxes he has raised on our own domestic businesses and think about whether that is an appropriate response to what is happening?

[Jonathan Reynolds]

We always reflect on the decisions we have made as the UK Government. I say to the hon. Member again—we have probably had this exchange a few times—that I am always willing to hear from the Conservative party how it plans to fund its spending plans, but it certainly did not set that out in the spending plans we inherited. If the Conservatives are ready to make a decision on that, we would love to hear from them, but until they do so, they should stop criticising us for fixing their mess.