UK-US Trade and Tariffs

Debate between Jonathan Reynolds and Ben Coleman

Thursday 3rd April 2025 Commons Chamber

[Jonathan Reynolds]

I thank the hon. Gentleman for his question and for his kind words. It has been quite a week so far, and we still have some way to go. This is an issue not just for Northern Ireland Members, but for all Members of the House. We have to be alert to the particular situation that would occur if there were a different retaliatory stance from us and the EU. That is why I briefed the First Minister, the Deputy First Minister and my counterpart yesterday. The shadow Minister was right that the issues around the duty reimbursement scheme are key. On the formal steps that we have taken, businesses can now input their concerns and what the tariffs will mean to them directly to Government. We need to work together, particularly in relation to Northern Ireland, to ensure that specific voice and that specific question are a key part of how we look at the issue and respond. I am keen to work with the hon. Gentleman in that regard.

[Ben Coleman (Chelsea and Fulham) (Lab)]

May I echo the thanks to the Secretary of State and the Prime Minister for the calm and effective way that they are dealing with the United States? Unlike some of the frivolous comments we have heard from Conservative Members, does my right hon. Friend agree that the US’s 20% tariff on EU goods is to be deeply regretted, as it could indirectly affect the many UK businesses that supply components to EU manufacturers that export to the US, particularly in the automotive, aerospace and pharmaceutical sectors? What discussions has he had with European counterparts about the US decision? How he will represent our concerns to them in the coming days, if there is an escalation of tariffs?

[Jonathan Reynolds]

My hon. Friend is right that our concerns have to be not just about what this means for our own relationship with the United States, but about the second-order impact on the UK from the trading relationship changes between the US and other key allies and markets. No discussion on trade or tariffs is complete without bringing up rules of origin. The complexities of some of the supply chains, particularly in the automotive industry, are key issues; we have to ensure that we have preferential tariff access to markets and that the products we make in our country qualify for those under the rules of origin. We are closely engaged with all partners. He will know that the Minister for the Cabinet Office, my right hon. Friend the Member for Torfaen (Nick Thomas-Symonds), deals with the EU reset, but we will continue to have a very close working relationship, as well as having direct conversations with our European Commission counterparts.