The BBC asked whether the UK would be exempt from tariffs, given the absence of a trade deficit between the two nations. The president did not respond directly and instead spoke about the trading deficit the US and Canada have and his plans to rectify that.
The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because it will make it more expensive for companies to sell goods in the world’s largest economy.
Trump told global executives at the World Economic Forum on this week that they could either produce their goods in the US or face widespread tariffs worth hundreds of billions or even trillions of dollars.
But Reynolds said when it comes to manufactured goods, the US did not have a trade deficit with the UK.
“We know this is something that not just President Trump, but the whole of his administration takes very seriously,” he said.
“We’ve obviously got a services-based economy. The US does not have that deficit with us so if that’s the logic of that position, I think we’ve got an argument to engage with.”
Tariffs are a central part of…
