US-EU trade war ‘in nobody’s interest’, says Downing Street

A trade war is “in nobody’s interest”, Downing Street has said following US President Donald Trump’s threat to impose 50% tariffs on EU goods.

Mr Trump threatened to increase tariffs on EU products last Friday, saying talks with the bloc were “going nowhere” and suggesting the new rate could come into effect on June 1.

But on Sunday night he said he would delay the tariffs until July 9 to allow for “serious negotiations”.

In Number 10’s first comments since Mr Trump made his threat, the Prime Minister’s official spokesman said on Tuesday: “We’ve always been clear that a trade war’s in nobody’s interest.

“And the EU and the US are two of our largest trading partners, which is why we’re so focused on improving and strengthening our trading relationships with both the EU and the US.”

Levies

The EU is currently subject to US tariffs of 10%, in line with most other nations after Mr Trump climbed down from the sweeping levies he announced on April 2 that had include a 20% charge for the bloc.

Earlier this month, the EU said it would impose its own tariffs on a range of American products, including aircraft, vehicles and alcohol, and begin legal action at the World Trade Organisation if it could not negotiate a solution with Washington.

Although the UK has managed to negotiate some concessions to the tariffs imposed directly on the country, a wider trade war between the US and EU could still harm the British economy.