LONDON — Britain’s trade chief is confident he can lower U.S. President Donald Trump’s 10 percent “reciprocal tariffs” on imports of U.K. goods.
“There’s no doubt in my mind we can get progress on reciprocal tariffs,” Jonathan Reynolds said in response to a question from POLITICO at the British Chambers of Commerce Global Annual Conference in London.
The U.K.’s business and trade secretary also said he has “no doubt” that the U.S. administration will lower 25 percent tariffs on British steel and aluminum imports, as part of the trade pact Prime Minister Keir Starmer struck with Trump early last month.
“The issue with implementation of the steel agreement is the melt and pour rules, which is the U.S. interpretation of rules of origin around steel,” Reynolds said. The rules require steel imported to the U.S. to be manufactured in its country of origin.
However, furnaces at Tata Steel UK’s Port Talbot steel mill — the largest steel exporter in the U.K. — are shut for several years as the firm transitions to greener tech. That means the company is importing steel from its plants in India and the Netherlands.
Implementing the deal with Trump “is very much about making sure Port Talbot gets the benefit of it as well,” Reynolds said, with the U.K. pushing for exemptions.
Reynolds spoke during the launch of the government’s Trade Strategy which sets out plans to seize new powers to protect steel and other domestic industries.
Starmer’s special adviser on business, Varun Chandra, has been in Washington this week to progress further talks and U.S. implementation of the deal. The U.S. has set a deadline of July 9 for trade talks with a number of countries.
Lowering Britain’s digital services tax on the revenues of search engines, social media and online marketplaces is not part of the ongoing negotiations, Reynolds said.
“In the wider discussions, you know U.S. concerns about digital services tax have been there,” he said. “But I think it’s always been wrong to portray the U.S. position as somehow demanding a reduction in tax for U.S. tech companies in exchange for trade access, export access to the U.S.”



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