Jonathan Reynolds
MP for Stalybridge and Hyde · Labour (Co-op) · United Kingdom
“I thank my hon. Friend for her engagement, her support and her advocacy on behalf of her constituents. This has been and is a difficult situation for them, and it is exactly because of our commitment that we are seeking to resolve things in a favourable way.”
“I welcome the support from the hon. Gentleman for the decisive action we are taking. On his point about potentially combining British Steel and, if it were acquired in the public interest, Speciality Steel UK, I urge caution in that regard.”
“I think it important to point out that there are costs either way: there are costs involved in running the business in public ownership, and there would also be costs to the state from the remediation and regeneration, partly because of the legacy of public ownership but also because such big steel industrial sites come with so many issue…”
“I am grateful to my hon. Friend for her advocacy on behalf of her constituents. She and I have discussed the matter several times. For colleagues who are less aware of the issue, Dalzell is a separate legal entity and company from Speciality Steel and thus separate from the full plans that we are talking about.”
“The process to date has in effect been working with potential private sector bidders on the viability of their plans. That task is entirely different from what we can do now, which is essentially to assess whether there is a viable future for this business under public acquisition.”
“Of course, CBAMs are fundamentally about trying to maintain fair competition between carbon-intensive sectors in developed countries such as ours and the rest of the world, so there is a little bit of incoherence there, to say the least.”
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“I know that this will be an anxious time for all businesses, not just those with direct trade links to America. Let me say very clearly that we stand ready to support businesses through this. That starts by ensuring that businesses have reliable information; any businesses that are concerned about what these changes mean for them can find clear guidance and support on great.gov.uk, where there is now a bespoke webpage. This Government were elected to bring security back to working people’s lives. At a time of volatility, businesses and workers alike are looking to this Government to keep our heads, act in the national interest and navigate Britain through this period. While some may urge escalation, I simply will not play politics with people’s jobs.”
“This is a formal step and it is necessary for us to keep all options on the table. We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action. If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from it will be lifted. Further information on the request for input will be published on great.gov.uk later today, alongside an indicative list of potential products that the Government consider most appropriate for inclusion.”
“The British people rightly expect the Government to keep our country secure at home and abroad, and an unnecessary, escalating trade war would serve neither goal. True strength comes in making the right choices at the right time. Thanks to the actions of our Prime Minister, who has restored Britain’s place on the world stage, the UK is in a unique position to do a deal where we can, and to respond when we must. It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths. However, we do reserve the right to take any action we deem necessary if a deal is not secured. To enable the UK to have every option open to us in the future, I am today launching a request for input on the implications for British businesses of possible retaliatory action.”
“It is the Government’s view that a deal is not just possible but favourable to both countries, and that this course of action serves Britain’s interests as an open-facing trading nation. I have been in contact with many businesses, across a broad range of sectors, including those most affected, who have very much welcomed this approach. It is clear to me that industry itself wants to grasp the opportunity a deal can offer and welcomes the Government’s cool-headed approach. In increasingly insecure times, I have heard some Members cling to the security of simple answers and loud voices. I understand the compulsion, but I caution Members of this House to keep calm and remain clear-eyed on what is in our national interest, not simply to proclaim that we follow the actions of other countries.”
“While any imposition of tariffs is deeply regrettable, from the beginning they promised to make themselves available and they have been true to their word. I look forward to our continued engagement over the days ahead. As Members will know, since the new US Administration took office, my colleagues and I have been engaged in intensive discussions on an economic deal between the US and the UK, one that would not just avoid the imposition of significant tariffs but deepen our economic relationship. On everything from defence, economic security, financial services, machinery, tech and regulation, there are clear synergies between the US and UK markets. That is reflected in the fair and balanced trading relationship that already exists between our two countries. I can confirm to the House that those talks are ongoing and will remain so.”
“And although that vindicates the pragmatic approach the Government have taken, we know that while the tariffs are still being levied the job is far from done. We are, of course, disappointed by the increase in tariffs on the UK and on other countries around the world. The impact will be felt among all trading nations. But I would like to update the House on how the UK can navigate these turbulent times, acting in our national interest and for the benefit of all our industries. I would also like to take this opportunity to thank my American counterparts, Secretary of Commerce Howard Lutnick, US trade representative Jamieson Greer, and special envoy Mark Burnett for their engagement over the past few months.”
“With permission, Madam Deputy Speaker, I would like to make a statement on the United Kingdom’s economic relationship with the United States. The UK has a strong and balanced trading relationship with the US worth £315 billion, which supports 2.5 million jobs across both our countries. This is second only to the EU, where our trading relationship is worth £791 billion. [ Official Report , 8 April 2025; Vol. 765, c. 6WC.] Yesterday evening the United States announced a 10% reciprocal tariff on UK exports, and it has today imposed a 25% global tariff on cars. That follows the application of tariffs of 25% on US imports of steel, aluminium and derivative products announced on 12 March. No country was able to secure an exemption from those announcements, but the UK did receive the lowest reciprocal tariff rate globally.”
“I recognise how important and relevant it is to all our constituents, so we will endeavour to keep all colleagues updated on progress.”
“The shadow Secretary of State also knows that we are imminently preparing to publish our trade strategy, which covers a lot of these issues, particularly around support for exporters that we want to proceed with. Northern Ireland is an incredibly important issue for all colleagues. The potential for a differential response from the European Union could lead to a difficult situation in Northern Ireland. As the Secretary of State highlights, the key policy is the duty reimbursement scheme, because goods entering Northern Ireland from the US that will not go into the wider single market are subject to the reimbursement programme. We must make sure that that works well. I recognise the points that he has made on it, and I will continue to update the House and all colleagues on our work in this area.”
“I have not yet received any credible proposals on how their spending plans would be paid for, but I am always available to receive those in writing. The shadow Secretary of State asks for reassurance, which we are always happy to provide on domestic policy changes. On things like the ZEV mandate for the automative sector, we are more pragmatic than the Conservative party was when in office. As he knows, the Department for Transport leads on that policy, but our response to the consultation on potential changes will be published soon. As colleagues would expect, I will not comment on the details of any negotiations with the US. In our manifesto, we committed to the UK’s sanitary, phytosanitary and food safety standards system. Of course the Government will adhere to that.”
“It is the right way forward. My next point is very important: it is false to see this as a choice between working with the US and working with the EU. We can work in a way that is consistent with both, and we should all be committed to that. The shadow Secretary of State also asked about the implications for the United Kingdom. Broadly, he asked me to reverse a series of policy choices made in the last 14 years; I will go through all of those. In relation to the spring statement, the Chancellor had already rebuilt the headroom substantially higher, due to the global turbulence, than that bequeathed her by the Conservative party. On the Conservatives’ spending plans, they left no business rates relief whatever: it was a one-year relief, rolled over, that never had any longevity.”
“Yes, we are in a more favourable position compared with those key friends and allies, but we must go further, especially in relation to the tariffs on the automotive sector, which is a particular concern for me. The shadow Secretary of State again brings up Brexit, which was perhaps not the Conservative party’s finest hour in preparing the state for large trade shocks, but let us pass over that. As the President of the Board of Trade, I am of the view that it is good that we can set our own trade policy, but I say to him and to all colleagues: is it not time that we try to unite the country for the future, rather than keep on harking back to the past? Is that not how we will find our way through this? Half the country voted one way, and half voted the other way, but let us build together and look to the future.”
“I thank the shadow Secretary of State for his response and his tone in responding. I recognise his commitment to free trade and the case he has made for it. I believe it is something we broadly share. He asks for honesty—that is always good in Parliament—but he is a little bit flippant about the position we find ourselves in today. He mentions a series of countries—Christmas Island, Kosovo—that do not have the kind of complex trading relationship that we have with the United States. The shadow Secretary of State can see from my tone, presentation and words that I am disappointed that we are in this position, but I look at the EU, facing a tariff of 20%; at Japan with 24%; at India with 26%; and at Canada and Mexico with 25% tariffs already in place.”
“Friend will know that, along with the changes to domestic policies such as the ZEV mandate, there was significant money in the Budget for incentivising the roll-out of infrastructure for electric vehicles, and £2 billion has been put aside for the wider joint collaboration and research and development initiatives with the automotive sector, which remains a clear and consistent Government priority. I will keep my right hon. Friend updated given her particular constituency interest.”
“My right hon. Friend is right that some of our iconic automotive manufacturing brands, such as BMW, Jaguar Land Rover and Aston Martin, have had particular success in the US market and are therefore exposed to tariffs. There is close co-operation in Government between the teams working on our EU reset and on our trade negotiations in this area, so I assure my right hon. Friend of the alignment, continuity and consistency of our policy. My right hon.”
“The consultation and call for input that I announced today is much more about the formal steps we need to take to understand from businesses the impact and give them the chance to put forward their views. As I say, that will not be necessary if we can come to an agreement, which I believe all Members want us to do. I believe that the relationship can be deepened. If we get it right, it will not come at a cost to our other key trading relationships, such as with the European Union. That is the Government’s objective and I welcome any support from throughout the House for fulfilling it.”
“There is a different structure to the trading relationship between the US and the UK—for instance, the US does not have with us the large deficit in traded goods that it has with the EU or China—so it is a different level of conversation and it allows us to put our own interests first. That is all that the Government seek to do in our policy towards the US. The hon. Lady mentions a range of other issues that I recognise. Colleagues know that I had strong views on the very large increases in industrial energy costs that occurred after 2010—there was an increase of almost 50% in real terms—and I think they need to be addressed. The industrial strategy and other Government initiatives set out our wider policy objectives and tools in this area.”
“That does not satisfy me, because I believe we could seriously get to a position in which we not only avoid the imposition of additional trade tariffs and barriers, but deepen our trade relationship and remove some of the barriers that already exist, particularly in the trade in services. That is the Government’s objective. We of course work closely with a whole range of friends and allies, but when they go into any negotiation, they represent their own national or customs union interest, and we do the same. I would not expect any country to go into a negotiation trying to represent the UK; other countries will have their own interests. I do the same for the United Kingdom: I have to put our interests first.”
“I am grateful to the hon. Lady for her questions and her submission. I am pleased to hear that she feels we need to end any potential trade war—although I am pretty certain I heard her in the media last week demanding that we escalate the trade war. I do not think that is in any of our interests, and it is not the route and direction we need to go in. The hon. Lady mentions that there is no sign of the UK being treated in any different way; she will know that the US has a view of VAT that we do not share—the US compares VAT to its sales tax. If we look at our rate of VAT and the comparable treatment of the European Union, we see that there is a differential.”
“We will continue to play a constructive role in relation to the WTO, and any multilateral organisation, where that serves our interests.”
“I warmly welcome my hon. Friend’s question. He is right that this is a substantial change in US policy. It is important that, even if we do not agree with some of the decisions made and the thinking that underpins them, we recognise where they come from. Indeed, they were part of the US presidential campaign, so we have been able to prepare the ground for our conversations. My hon. Friend asked about international co-operation. We are strongly involved with the WTO, and particularly supported the re-election of Dr Ngozi as its director-general. It is important to remember that despite the problems the multilateral system faces, it is still the basis on which the vast majority of trade around the world takes place.”
“For all Members of Parliament, this should be a time for reassurance, for calm heads and for giving clear information to British business on how we will navigate these difficult times. That is the correct message to send out from Parliament.”
“As a former Treasury Minister, the right hon. Gentleman will know the kind of work that goes on to make sure that such assessments are made. The announcement came late last night; it is only last night and this morning that we have had the chance to respond to it. He will also appreciate that the impact on the UK is about not just the direct relationship between the US and the UK, but what happens in the wider global trading system. How other countries choose to react to the US announcements will be the determining factor for the impact on the UK, and we do not know that at this stage. I promise to keep the House updated, and to update the right hon. Gentleman personally, if he wishes, at any stage on our work to assess the impact on the UK.”
“Our objectives are clear and were all in the manifesto on which Government Members stood for election and won. They remain a key priority. I assure my hon. Friend that the alignment in Government between the EU reset and the US negotiation is very strong.”
“I am grateful to my hon. Friend for her question. Let me be clear again: no one is celebrating the position that the country found itself in this morning. We recognise the differential for the UK, but all of us in the House—Members from all parties—are disappointed by the announcement from the United States, and are seeking to provide a way through. I know that my hon. Friend feels very strongly about this matter, but I reiterate to her that we do not have to make a choice between the US and the EU. They are two key, long-term and important trading partners, and security and defence partners as well. The EU summit next month is a key event. Our aspirations remain for an ambitious EU reset on trade, to rectify flaws in the agreement made by the previous Government.”
“The hon. Lady is incorrect, and I must ask her to take a bit more of a serious tone in the questions that she brings to the House. This is really serious stuff. I have met my counterparts on many occasions, and we were in contact even before some of the formal procedures on the US side were confirmed. It was not technically possible to have been in touch with them sooner. Their engagement has been consistent and serious. She is incorrect, and I ask her to please approach these important proceedings with a bit more seriousness.”
“I am grateful to my hon. Friend for his question, and for the work that he did, alongside me, in this area over many years in opposition. He knows the commitment of the Government and Government Members to the steel industry. Of all the issues of industrial neglect that we were bequeathed, those are some of the harder ones to resolve; there is no doubt about that. He knows that our ambition is strong, whether we are talking about the future of British Steel at Scunthorpe and Teesside, or, in terms of sovereign capability, our aspirations under the steel strategy for new investments and new technology. The issues are difficult—particularly this week; I know that all the workers at Scunthorpe are concerned—but the Government’s commitment to and work on the steel sector will go on.”
“The right hon. Member knows that I will not go into the detail of any negotiation, but he knows of our manifesto commitment to our SPS regime, which I mentioned to the shadow Secretary of State. That commitment is important to the Government, and it affects all our trade negotiations, not just this one.”
“My hon. Friend is right to talk about the historic scale and significance of the announcement last night, particularly for her constituency, which has economic infrastructure that is so vital to the country, and how we will process the scale of the changes. I assure her that the Prime Minister, members of the Cabinet and I as the Secretary of State are at all times doing what she mentioned, in the decisions that we have had to make at pace, so that we can put our national interests forward in a way that has allowed us to progress negotiations and to keep opportunities open.”
“The US side will have timescales that it wants to engage on, but I believe that no country in the world is further advanced in its talks with the United States, and hope and optimism comes from that.”
“The hon. Member will have heard me this morning on the media and here in Parliament being clear about how we feel about these decisions. We are deeply disappointed that no country has been able to secure an exemption from the tariffs, but we remain committed to working hard to deliver a potential way through this. The hon. Member asked how we will respond. Respectfully, the statement covered the fact that we will ask British businesses to work with us on the necessary formal steps. On the timeframe, I shadowed a lot of Conservative Business Secretaries in the last few years—there was fairly rapid turnover at one point—and some of them gave all kinds of timeframes and commitments on trade deals, but that is not in our interests because it puts pressure on us in the negotiations.”
“We say that it applies, as it does, to domestically produced goods as much as to goods that come into the UK, and that it is not trade distorting; indeed, the balance of trade between the US and the UK is evidence of that. The argument from the US is slightly different. I will not go into the content of all the negotiations—she will appreciate that—but success in any negotiation is about being willing to be at the table and put forward our argument, while recognising the other side’s argument. That is the approach of this Government, and that is the way forward.”
“My hon. Friend reminds me that I did not get a chance to respond to the shadow Secretary of State. If, following these announcements in the United States, we had come to Parliament and said, “You know, the answer to this is that low-paid people will not get the sick pay they would otherwise have got under this Labour Government,” that would have been the wrong response. Again, as ever, that would be scapegoating the wrong people for difficult things that have nothing to do with their position in the UK economy. My hon. Friend skilfully leveraged in a number of questions. There are real differences of opinion between us and the United States on VAT.”
“Members think of the President and his agenda, that agenda is based on returning a certain type of good-quality manufacturing job to the United States, and in many cases British firms and British business already provide those. They will provide more if we can find a way through these trade tensions and the imposition of tariffs, so they can work with us on the solution to these problems. I am grateful to the hon. Member for mentioning that company.”
“Our job is to defend the UK national interest, and the company in Torbay that the hon. Member described—it sounds like a fantastic company —is an exemplar of why I want businesses to be based in the UK: because they can then access a whole range of markets from the best possible position. That is exactly the kind of company that, because of complex supply chains, will have questions about what the announcements mean for it. We decided to launch bespoke information on great.gov.uk today to coincide with this announcement precisely to attempt to provide such companies with the assurance that they need. A business like that can genuinely help us through this difficult period, because whatever hon.”
“I greatly appreciate my hon. Friend’s advocacy for steel. She puts the case extremely well, which is that the kind of products that we make in the UK steel sector and which, in the main—where we export them to the US—are niche, high value and in critical sectors such as defence and the manufacturing supply chain, are complementary to the US. That is a good case of why I believe there is no need and no argument for the imposition of tariffs in the sector. Our steel sector is complementary to the US, whether that is in defence or the manufacturing supply chain. That is the basis on which we can find a way through this. My hon. Friend is right to say that the level of domestic support has increased considerably through the steel strategy and the £2.5 billion—£3 billion in total, including Port Talbot—that this Government have put forward.”
“I am grateful to the hon. Gentleman for his comments. He knows that I always have time for him to discuss the particularly challenging constituency issues that he faces through the position at British Steel. Just to be clear, today’s announcement is the formal step necessary to engage with British business about last night’s announcements. That is an important stage and the right way forward, and we have been prepared for it. In relation to the other challenges around the steel industry, this is a particularly challenging situation—he and my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin) know that better than anyone. Our commitment, even in difficult circumstances, is absolute. We will continue with that, and I will continue to keep him and his constituents updated at all times.”
“I am grateful to my hon. Friend. I have been in touch with a lot of people who have been this country’s Business Secretary, including some Conservative colleagues who remain in touch. I find that, at times, to be a very useful and worthwhile thing. I cannot tell my right hon. Friend that I am in touch with Boris Johnson on this or any other matter. On the work of the previous Government, nothing substantive was negotiated in the trade talks they had with the US. This is a very different situation, but one where I think, if we get it right, there are gains. As I say, it is not just to avoid what was announced last night or before that on steel, aluminium and automotive tariffs, but to genuinely improve that trading relationship to our mutual benefit.”
“I am grateful to the right hon. Gentleman for how he has put that. I think he is right on where the burdens of policy fall in that area. It is not in anyone’s interest. No one wins a trade war; that is impossible. However, it requires us to react in a way that is calm, reassuring and pragmatic and which seeks a way forward. I can tell him that that is exactly what this Government will seek to do.”
“Secondly, there are things such as the announcement in the Budget of the £2 billion for collaboration with the private sector in the automotive field, the money incentives for electric vehicle infrastructure and the changes around the wider ZEV mandate that we are consulting on and about to publish a response to, for which we need a more pragmatic response than we have seen in the past.”
“My hon. Friend is right to highlight that. I am tremendously proud of our automotive sector. Indeed, he may know that I come from and grew up in one of our automotive sector powerhouses, Sunderland, with the Nissan plant. It is incredibly important to lots of communities in the supply chain all around the UK, but particularly to our exports. The US is a key market, particularly for the high-value models, some of which he mentioned, which are incredibly valuable to this country. We want and seek to maintain that success. On the kind of support, first, it is about dealing with this issue.”
“There are tremendous opportunities for Scotch whisky from some of the other trade negotiations that we are having, such as with India in particular, which is the biggest whisky market in the world, as the right hon. Gentleman will know. I think there could be real steps forward in terms of our market access there and the arrangements that we have, which will give us an advantage over other countries, and that is also a prominent part of our work.”
“The right hon. Gentleman knows the value that we place as a Department on the incredible product that is Scotch whisky. We have a particular set of policy initiatives on geographic indicators to make sure the brand is protected, and I always do everything I can to support Scotch whisky, which is just absolutely world class and always will be. He is right to say that our joint success in Scotch whisky produces a prominence that sometimes makes it vulnerable to retaliatory measures because of the recognition of the success in that field. On domestic policy, I remain in close contact with the Chancellor on all matters and will do on this one.”
“My hon. Friend is absolutely right in his assessment of the burdens and benefits of solving the challenge we have been faced with by the announcements yesterday evening. He will know that the defence sector is one of the eight priority sectors of our industrial strategy. There is a whole range of work across areas like air and space that we are engaged in with Ministry of Defence colleagues. Of course, we have also had a significant increase in defence spending, which is a crucial part of how we respond to these threats. The US will always be a crucial security ally for us, and our shared interests—whether they are economic or in the defence and security space—are enduring. That is something we should always bear in mind as we try to find a way through.”
“We have to work with industry to do it, but we also have to recognise that what we inherited from the Conservative party was not working. That is why we opened the consultation, and we will publish the response very soon.”
“I thank the hon. Member for his words on the automotive sector. On the ZEV mandate that he references, it was a policy of the previous Government to be clear. We inherited that policy. The consultation we have opened with our colleagues in Department for Energy Security and Net Zero and the Department for Transport will look at that in the context of a fall across all European markets in automotive production and demand, and this incredible entry on to the world economy of increased Chinese production, which is a challenge for all of us. He will also know that the automotive sector is very much an export-led sector—we export 80% of what we make—and all our key markets have the transition policies in place towards electric vehicles, so if we did not make that transition, we would not have a product to sell in those key markets.”
“I thank my hon. Friend for her support. We are taking steps to ensure that all options are on the table for the action we may need to take in future—that is important. It is inevitable when an announcement of this magnitude has occurred that businesses will be concerned, and I understand that will be what her constituents are telling her this morning. I absolutely assure her that the approach I have laid out today will be something that we continue to work towards at pace. Our tone, the assurances we can give and the fact we are approaching this with calm-headed pragmatism is vital, and that will be part of how we can reassure businesses. We will work to get to the position she articulates—a better set of trade terms with the US—and that is the objective of the Government.”
“I do believe that strength comes in making the right choices at the right time in our national interest. I can tell the hon. Member that the talks I have had with my US counterparts are not to do with what she has articulated; they are to do with goods, services, the regulation of professional bodies and all the things we would associate with normal trade talks. The United States is not seeking to make our children unsafe or more vulnerable. That is not the right approach to take to our key and core ally. I think sometimes the Liberal Democrats are inventing problems to try to propose that they are the solution. This is a conversation about trade, and it is vital that we keep it in those important and appropriate terms.”
“I want businesses to be based in the United Kingdom and to serve a whole range of markets from the United Kingdom. That pitch is not just about the comparative position we find ourselves in, but about the kind of policies we put in place to ensure we have the level of competitiveness we need. That is something that every country in the world is engaged in, but I assure my hon. Friend—not so much on the announcements last night, but on the wider agenda of the Government—that that is our commitment.”
“I am grateful to my hon. Friend for raising one of the most important issues we face: the impact of trade diversion—not just the relationship between the US and the UK, but what it means for goods that potentially would have gone to other countries coming to the UK market. That is something we have to be extremely vigilant about. He will know that we have those safeguards in place on the tariffs already announced on steel and aluminium, and that we have our own quotas and 25% tariff to protect domestic production to ensure that that is not the case. I can tell him that we stand ready to use those powers for any sector of the economy that we need to use them for, or indeed to take further powers if that is deemed to be necessary.”