Finance
UK does not expect new Trump tariff to impact its US deal, PM spokesman says
Published by Global Banking & Finance Review®
Posted on February 23, 2026
2 min readLast updated: February 23, 2026
Tags:Global trade
Quick Summary
Britain says most of its UK‑US trade deal will stand despite Trump’s new 15% global tariff. Starmer's team is engaging USTR Jamieson Greer while weighing retaliation and seeking clarity for businesses.
UK Sees Limited Impact from Trump’s 15% Tariff on US Trade Deal
UK Government Response and Trade Outlook
LONDON, Feb 23 (Reuters) - Britain does not expect U.S. President Donald Trump's new global tariff of 15% to impact the "majority" of a UK-U.S. economic deal that was announced last year, Prime Minister Keir Starmer's spokesman said on Monday.
Talks with U.S. Officials
The spokesman said Britain's trade minister, Peter Kyle, had spoken with Jamieson Greer, the U.S. trade representative, to highlight his concerns about the uncertainty this would cause for businesses.
Britain is at risk of becoming one of the worst hit countries after the U.S. Supreme Court struck down Trump's global tariffs on Friday and he responded with new levies across the board.
Earlier 10% Terms vs. New 15% Levies
Starmer's government had negotiated a lower reciprocal tariff rate at 10% after reaching a deal with the U.S. last year, but Trump’s promise to reimpose higher levies at 15% means businesses may now face even higher duties.
Retaliatory Options Considered
Starmer's spokesman said the government expects discussions between British and U.S. officials to continue this week and he refused to rule out the possibility of retaliatory tariffs.
Steel, Pharmaceuticals and Cars
Impact on Key Sectors
"We don’t expect this ruling to impact the majority of trade" under the UK-U.S. economic deal, including tariffs agreed on steel, pharmaceuticals and cars, the spokesman said.
Think Tank Assessment (Global Trade Alert)
Britain will be among the countries most impacted by Trump's latest announcement, according to the think tank Global Trade Alert, while Brazil, China and India stand to benefit the most.
Business Reaction and Trade War Fears
Starmer's spokesman said businesses do not want "to see a trade war", but he said "nothing is off the table at this stage".
(Reporting by Andrew MacAskill; writing by Kate Holton; editing by William James)
Key Takeaways
- •Downing Street says the new 15% global tariff will not affect the majority of the UK‑US economic deal agreed last year.
- •Business and Trade Secretary Peter Kyle raised concerns directly with USTR Jamieson Greer about uncertainty for firms.
- •Following a Supreme Court ruling on earlier tariffs, Trump announced fresh across‑the‑board levies at 15%.
- •The UK left open the option of retaliatory measures while stressing it wants to avoid a trade war.
- •Carve‑outs under the deal, including steel, pharmaceuticals and autos, are expected to remain largely intact.
Frequently Asked Questions about UK does not expect new Trump tariff to impact its US deal, PM spokesman says
1What is the main topic?
The UK government says Trump’s new 15% global tariff should not affect most of the UK‑US economic deal agreed last year, while officials continue talks with the United States.
2How could UK businesses be affected?
Officials warn of uncertainty and potential higher duties on some goods, but key carve‑outs in steel, pharmaceuticals and autos are expected to limit the overall impact.
3Is the UK considering retaliation?
Yes. While preferring to avoid a trade war, the government has not ruled out retaliatory tariffs as discussions with U.S. counterparts continue.
