UK-US Trade and Tariffs

Debate between Jonathan Reynolds and Kirsteen Sullivan

Thursday 3rd April 2025 Commons Chamber

[Jonathan Reynolds]

I thank the hon. Member for his words on the automotive sector. On the ZEV mandate that he references, it was a policy of the previous Government to be clear. We inherited that policy. The consultation we have opened with our colleagues in Department for Energy Security and Net Zero and the Department for Transport will look at that in the context of a fall across all European markets in automotive production and demand, and this incredible entry on to the world economy of increased Chinese production, which is a challenge for all of us. He will also know that the automotive sector is very much an export-led sector—we export 80% of what we make—and all our key markets have the transition policies in place towards electric vehicles, so if we did not make that transition, we would not have a product to sell in those key markets. We have to work with industry to do it, but we also have to recognise that what we inherited from the Conservative party was not working. That is why we opened the consultation, and we will publish the response very soon.

[Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)]

I thank my right hon. Friend for his statement and for his efforts and those of his team thus far. I also welcome the fact that there will be engagement with businesses on the potential for retaliatory action—that input is vital. While the UK has the lowest rate of reciprocal tariffs, that will be cold comfort to the many businesses in my constituency of Bathgate and Linlithgow and, indeed, for those in the whisky and salmon industries, which employ thousands of people across Scotland. Will the Secretary of State assure the business community that he will work at pace with his team to secure a sustainable trade deal with lower tariffs and to bring much-needed certainty to businesses and households across this country?

[Jonathan Reynolds]

I thank my hon. Friend for her support. We are taking steps to ensure that all options are on the table for the action we may need to take in future—that is important. It is inevitable when an announcement of this magnitude has occurred that businesses will be concerned, and I understand that will be what her constituents are telling her this morning. I absolutely assure her that the approach I have laid out today will be something that we continue to work towards at pace. Our tone, the assurances we can give and the fact we are approaching this with calm-headed pragmatism is vital, and that will be part of how we can reassure businesses. We will work to get to the position she articulates—a better set of trade terms with the US—and that is the objective of the Government.