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Sunday 19 January 2025 11:42 am

Government ‘prepared for all scenarios’ says minister as Trump tariffs loom

By: City PM Reporter

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Trump's constant tariff threats have damaged his credibility in markets.
Trump's constant tariff threats have damaged his credibility in markets.

The Government “has prepared for all scenarios”, a Cabinet minister has said, as questions about President-elect Donald Trump’s tariffs loom large ahead of the inauguration on Monday.

Chief Secretary to the Treasury Darren Jones said “we need to see what the Trump administration do” but also that Mr Trump is “well known for wanting to do a good deal”.

Meanwhile, a shadow minister has urged the Government to resume talks over a free trade deal, given the concerns over tariffs.

President-elect Trump will be sworn in to a second term in office on Monday, following his election victory in November, and there have been concerns over what his pledged tariffs could mean for economies around the globe.

When asked about tariffs, Mr Jones told the Sunday with Laura Kuenssberg programme: “Well, look, as you would expect, the Government has prepared for all scenarios.

“They’re hypothetical at this stage, we need to see what the Trump administration do.”

Mr Jones also said the UK and US are “strongly intertwined”, regardless of who is in the White House.

Asked if he was worried about resentment between the two sides with the change of government approaching, he said: “No. Obviously the UK and the US has a long and deep-rooted relationship.

“We’ve got lots of great assets, lots of great capabilities. What we say in the world matters and our economy, our security, our defence, our values are strongly intertwined with the Americans irrespective of who their president is.”

Shadow foreign secretary Dame Priti Patel is in Washington to attend the inauguration on behalf of the Conservative Party.

Speaking to the BBC on Sunday morning, Ms Patel said it is “absolutely vital” that transatlantic trade deal talks get back under way.

Read more

UK firms ‘bracing for change’ as Trump revives tariff threat over Big Tech tax

Donald Trump addressing media at a press event, wearing a suit and tie, with reporters and cameras in the background.

She told the Sunday with Laura Kuenssberg programme: “I think this Government, the Labour Government … Keir Starmer and David Lammy, should resume talks over a free trade deal. We set the work in motion when we were last in government.

“When it comes to tariffs, that is not conducive at all to economic growth and prosperity, let alone economic security.

“Trade discussions must resume. I think that’s absolutely vital, because it’s only through having honest discussions about a trade arrangement, a trade agreement, will these issues come to the fore.”

Earlier this week, Sir Keir told the Financial Times that “tariffs aren’t in anybody’s interests” and that the UK ambition “is to have a deal of some sorts with the US, a trade deal. That’s where our focus is”.

The Government is expected to be represented at Monday’s ceremonies by outgoing UK ambassador to the US Dame Karen Pierce.

Former New Labour minister Lord Mandelson was announced as Dame Karen’s replacement in December and Mr Jones has told broadcasters he is confident the appointment will be approved by the Trump team, following reports there could be some uncertainty over Washington giving the decision the nod.

Asked on the BBC’s Sunday with Laura Kuenssberg programme whether he was “confident” that Donald Trump’s administration will accept the nomination, Mr Jones said: “Yeah. For the first time in, I think, maybe 50 years, this is the first time that a British Prime Minister has picked a politician to be the ambassador in DC.

“We have brilliant diplomats and Karen Pierce has done a brilliant job, but the reason the Prime Minister picked Peter Mandelson was because we want to do things differently.”

ReformUK leader Nigel Farage and former prime minister Liz Truss are among the other British political figures who have travelled to DC ahead of Monday’s ceremonies.

By Caitlin Doherty and Rhiannon James, PA

Read more

UK in line for fresh US tariff hit as Trump proposes ‘forced labour’ levy

Breaking news conference podium with microphone, focused on speakers notes and event backdrop, set for journalist updates

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