‘Hugely detrimental’: Trump tariffs on gin would weaken public appetite for US trade deal, government warns

‘These tariffs are completely unnecessary,’ says Liz Truss

Kate Devlin
Whitehall Editor
Thursday 23 July 2020 17:55 BST
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Trump says that tariffs are causing the US treasury to "take in billions and billions of dollars from China"

The public will lose enthusiasm for a trade deal with the US if Donald Trump imposes further tariffs on British industry, Liz Truss has warned.

The international trade secretary said she was “outraged” by the threat of price hikes on products such as gin.

Mr Trump slapped extra tariffs on drinks including Scotch last year as part of a dispute over European subsidies for plane manufacturer Airbus.

The row has cast a shadow over talks around a post-Brexit UK-US trade deal.

Ms Truss warned that the spat could harm public support for any such agreement.

She told a House of Lords committee that she had made clear to the US that additional tariffs on gin and other drinks would be “hugely detrimental” to negotiations.

She added: “I think the British public would lose their support for negotiations continuing were there to be additional tariffs levied.”

Ms Truss will present her US counterpart, Robert Lighthizer, with a bottle of gin when they next meet, she added.

She told peers: “These tariffs are completely unnecessary and they harm industry on both sides of the Atlantic.

“We want them removed and we want them removed fast – preferably through a negotiated settlement.

“We are taking a tough line with the US, I have raised this on multiple occasions and I will continue to fight the corner for British business.”

Ms Truss also appeared to concede no deal would be done this year, as governments on both sides of the Atlantic battle the coronavirus crisis and the resulting economic fallout.

Ms Truss said it would be “dangerous” to predict when a deal would be struck, and said she would not set a public deadline, for fear it would be used against the UK.

Earlier this week US secretary of state Mike Pompeo said he wanted a UK-US trade deal to be signed “as soon as possible”.

Ms Truss also defended the use of seven-year non-disclosure agreements, describing the information involved in confidential consultations with groups including farmers as “highly sensitive”.

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