The UK Government is assessing the potential impact of US import duties on British defence exports, amid wider concerns over transatlantic trade tensions.
In response to parliamentary questions from MPs James Cartlidge and Ian Roome, Defence Minister Maria Eagle confirmed that the Government is reviewing the effects of US tariffs “across the full spectrum of UK industries,” including defence.
“Nobody wants a trade war,” Eagle said. “The United States remains the United Kingdom’s foremost defence and security partner.”
The value of the trading relationship between the two countries was cited at £315 billion, supporting an estimated 2.5 million jobs across both economies. Eagle reiterated that the UK is seeking to “negotiate an agreement with the US to deepen our economic relationship” while “ensuring all options are considered in response to tariffs.”
Eagle also confirmed that the upcoming Defence Industrial Strategy will consider the implications of US trade barriers for UK defence companies, amid ongoing negotiations.
While no specific measures were announced, the comments suggest that the UK Government is looking to protect its defence industry from the effects of any US-imposed tariffs and is keeping a wide range of options on the table should economic relations deteriorate.
Don’t fall into the trap of putting tarriffs on imports of US equipment. All that does is effectively reduce the defence budget by giving the money back to Treasury.
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It’s not the tariffs we impose, since we have a 15% build of each F-35, at a stroke the US has made the biggest arms procurement programme just that little bit more expensive for themselves and every other purchaser. Good work commander in chief!
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