MPs have called for the Government to maximise pressure on the US to secure relief from tariffs ahead of Donald Trump’s state visit.
The Commons Business and Trade Committee said the visit next week is the moment to put pressure on the US president to agree to the final terms of the so-called economic prosperity deal.
The UK and US signed a trade deal in June that reduced tariffs on car and aerospace imports to the US, but failed to agree on terms for British steel, leaving tariffs on it at 25%.
In a report on the deal, the committee welcomed the Government securing swift tariff relief for key sectors.
“It is however now vital that Government maximises pressure on the United States — beginning and following the president’s state visit — to agree final terms for a lasting economic prosperity deal to end the threat of future sectoral tariffs, maximise predictability and that where the UK has secured terms which are second best to the EU, we aim to improve them,” they said.
Committee chairman Liam Byrne MP said the state visit is “no mere pageant”.
He said: “It is a test of whether Britain and America build a safer, richer future – or remain trapped in tariff fights that serve neither nation well. Sir Keir Starmer deserves credit for securing the economic prosperity deal.
“But we can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.”
The committee also urged the Government to seal a deal on aluminium and pharmaceuticals and for any final agreement to reflect the realities of the UK’s supply chains and transition to low-carbon production.
It said the UK should leverage the US partnership to gain an edge over China in artificial intelligence and defence technology, de-risked supply chains and greater security for critical minerals supplies.
“Britain’s science, AI and the City of London, joined with America’s tech giants and venture markets, could set the standards of this century and help secure western leadership over China for decades to come,” Mr Byrne said.
“But that means we have got to turn paper promises into a binding bargain that ends the tariff tempest that is battering British exporters and investors.”
It comes as US financial firms have announced investments in the UK worth £1.25 billion before Mr Trump’s state visit.
Citi Group has confirmed it will invest £1.1 billion across its UK operations, while S&P Global will put £4 million into its Manchester offices.
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