The UK government is preparing a list of US products that could face retaliatory tariffs following President Donald Trump’s announcement of sweeping new import duties on UK goods.
The move marks a significant shift in the UK’s stance as ministers aim to finalise a broader economic deal with the US. Business and Trade Secretary Jonathan Reynolds told MPs that the government is currently consulting British businesses on the impact of the new 10% tariffs being imposed on nearly all UK exports to the United States. He added that if a deal is not reached by 1 May to reduce or reverse these tariffs, the UK is ready to strike back with import taxes of its own.
Among the US products under consideration for UK tariffs are bourbon whiskey, crude oil, firearms, purebred horses, and children’s clothing. A sample list of potentially affected products—published Thursday by the Department for Business and Trade—spans 417 pages and covers 27% of current UK imports from the US. Officials noted, however, that inclusion on the list does not automatically mean a product will face tariffs.
The UK exported nearly £60 billion worth of goods to the US last year, making it one of the country’s most significant trading partners. Key export categories include machinery, vehicles, and pharmaceuticals. Despite the 10% tariff being lower than the 20% rate imposed on the EU, additional duties have also been applied—including a 25% tariff on UK car exports, and on steel and aluminium products. Pharmaceuticals, semiconductors, copper, and some types of lumber have been excluded from the new charges.
While President Trump has signaled openness to negotiations—telling the BBC that Prime Minister Sir Keir Starmer “was very happy on how we treated” the UK—he also made clear that any compromise would require “something that is so phenomenal” in return. Speaking from Air Force One, Trump said that “every country has called us” since his tariff announcement. “That is the beauty of what we do—we put ourselves in the driver’s seat,” he added.
Reynolds told the House of Commons that discussions with the US are ongoing, with the aim of securing an agreement that would prevent retaliatory measures. He insisted the UK “reserves the right to take any action we deem necessary” if talks fail. If an agreement is reached, the current consultation with UK businesses will be paused.
However, there is concern within Westminster about the economic impact of a potential trade war. The Office for Budget Responsibility (OBR), the government’s independent fiscal watchdog, warns that a prolonged conflict could shrink UK economic growth by up to 1%—potentially wiping out the £9.9 billion fiscal buffer announced by Chancellor Rachel Reeves in her Spring Statement. That scenario could force the government to raise taxes or reduce spending to meet its fiscal rules.
Reynolds admitted he was “disappointed” by the US move but claimed the UK’s lower tariff rate compared to other nations “vindicated the pragmatic approach the government has taken.” Shadow Business Secretary Andrew Griffith disagreed, arguing that the UK had received “no special favours,” pointing out that it now faces the same tariffs as nations like the Congo and the Christmas Islands. Griffith further contended that the situation undermines previous claims that Brexit would boost Britain’s global trade standing.
Meanwhile, there are suggestions that the UK may offer tax concessions in negotiations. Chancellor Reeves has hinted that the UK’s digital services tax—introduced in 2020 and generating around £800 million annually—could be revised as part of any agreement. The 2% levy currently targets large tech firms, many of which are American.
Though both the UK government and business groups have so far pursued a cautious approach, seeking not to provoke the Trump White House, pressure is mounting. A loose deadline has now been set: the business consultation must conclude by 1 May. If no deal is signed by then, demands for a firm UK response—including the imposition of retaliatory tariffs—are expected to intensify.
