The newspaper wrote: “Sources close to Trump said that Britain could be exempt from customs duties under the terms of a deal that Britain hopes to conclude in the coming months.”
British ministers and diplomats intend to rely on the “special relationship” between Britain and the United States in an attempt to reach an agreement with the US president-elect. According to a British government source, London will give priority to services exports in any negotiations, the value of which last year amounted to 130 billion Australian pounds (about 167.93 billion dollars).
The newspaper quoted the source as saying that the Trump team is likely to reject requests to raise customs duties on goods necessary for domestic production in the United States, including cars.
It also indicated that the British economy could contract by 0.7% if the tariffs were fully imposed.
She continued: “Any agreement on easing customs duties will likely require Britain to make other political concessions, which could include (British Foreign Secretary David) Lammy’s plan for British rapprochement with the European Union.”
British Finance Minister Rachel Reeves said last Wednesday that Britain will continue to promote the idea of free trade in dialogue with the United States. She expressed confidence that current trade flows between the two countries will continue under Trump’s rule.
Earlier, Trump announced plans to pursue a protectionist policy and impose customs duties ranging between 10 and 20% on imports, and may reach 60% if they are of Chinese origin.
Source: Novosti
#Telegraph #Trump #exempt #British #imports #customs #duties
**Interview with Economist Dr. Emily Thornton on UK-US Trade Relations under Trump**
**Editor**: Dr. Thornton, thank you for joining us. The recent reports suggest that the UK is seeking exemptions from customs duties under the incoming Trump administration. What are your thoughts on the potential for such exemptions to reshape the UK’s trade landscape with the US?
**Dr. Thornton**: Thank you for having me. The possibility of exemptions from customs duties could indeed provide a significant boost to UK exporters, especially in services, which are a key component of our economy. However, the negotiations could be complex and could require the UK to make political concessions that may not sit well with all constituencies in Britain.
**Editor**: Some critics argue that concessions to the US could compromise British interests, especially in light of the potential for a customs duties imposition that could contract the UK economy. What would you say to those concerns?
**Dr. Thornton**: That’s a valid concern. Balancing the promise of free trade with the potential cost of political concessions will be tricky. If the UK concessions lead to a weakening of its regulatory standards or a closer alignment with US policies, it could generate significant domestic backlash.
**Editor**: Given the historical “special relationship” between the UK and the US, do you believe this could sway public opinion? How do you see the current political climate affecting public perception of a trade deal?
**Dr. Thornton**: The “special relationship” can certainly influence negotiations favorably, but public sentiment is notoriously unpredictable. Many people are wary of US policies, especially around protectionism. This could lead to a divided opinion where some view a deal as beneficial while others see it as undermining UK sovereignty or economic stability.
**Editor**: with Trump’s protectionist tendencies and potential tariffs, how should the UK government position itself to mitigate risks while pursuing trade benefits?
**Dr. Thornton**: The UK government should focus on transparency and communication with both the public and industry stakeholders. It’s crucial to demonstrate how proposed deals serve national interests without compromising key economic sectors. Moreover, diversifying trade partners and ensuring reciprocal benefits will help soften any negative impacts from an aggressive US trade policy.
**Editor**: Thank you, Dr. Thornton. This leads us to a crucial question for our readers: Do you believe that the benefits of a trade deal with the US would outweigh the risks of potential concessions in other areas? Let’s open the floor for discussion.
