The UK must be excluded from the tariffs Donald Trump is threatening to impose on exports to the US, the enterprise secretary has mentioned.

Jonathan Reynolds instructed the BBC that the US has no items commerce deficit with the UK, which happens when a rustic imports greater than it exports.

President Trump has doubled down on his risk to impose large tariffs on nations that promote merchandise within the US.

“I believe we have an argument to interact with,” Reynolds mentioned.

The BBC requested whether or not the UK can be exempt from tariffs, given the absence of a commerce deficit between the 2 nations. The president didn’t reply instantly and as an alternative spoke in regards to the buying and selling deficit the US and Canada have and his plans to rectify that.

The prospect of upper taxes being launched on imports to the US is regarding many world leaders as a result of it would make it dearer for corporations to promote items on this planet’s largest financial system.

Trump instructed international executives on the World Financial Discussion board on this week that they may both produce their items within the US or face widespread tariffs price a whole lot of billions and even trillions of {dollars}.

However Reynolds mentioned with regards to manufactured items, the US didn’t have a commerce deficit with the UK.

“We all know that is one thing that not simply President Trump, however the entire of his administration takes very critically,” he mentioned.

“We have clearly acquired a services-based financial system. The US doesn’t have that deficit with us so if that is the logic of that place, I believe we have an argument to interact with.”

Tariffs are a central a part of Trump’s financial imaginative and prescient. He sees them as a means of rising the US financial system, defending jobs and elevating tax income however he additionally makes use of them as leverage to pursue different insurance policies.

He has already mentioned he’s contemplating imposing a 10% tax on imports from China as soon as 1 February, claiming the nation is sending fentanyl, an artificial opioid, to Mexico and Canada.

Trump had additionally threatened 25% tariffs on Canada and Mexico, once more citing fentanyl in addition to immigration amongst his issues.

Nonetheless, Trump has since mentioned he “would moderately not” impose tariffs, suggesting a commerce deal might be on the desk.

Individually, the enterprise secretary mentioned the UK had left open the opportunity of following EU guidelines for meals and farm merchandise as a way to return to frictionless entry to European markets.

Reynolds mentioned such an settlement – which lowers all commerce limitations in return for mirroring EU guidelines and requirements – wouldn’t cross the federal government’s pink strains.

The feedback got here after EU Trade Commissioner Maros Sefcovic told the BBC a brand new settlement, together with so-called dynamic alignment on requirements, is feasible alongside different areas of pan-European co-operation on customs.

Reynolds mentioned Sefcovic’s tone was in step with what the federal government had already mentioned a few “twin-track technique” on commerce.

“We will enhance the phrases of commerce with the EU in a means which does not revisit customs unions or single markets or the arguments of Brexit, and we will try this while pursuing nearer commerce hyperlinks all over the world,” Reynolds mentioned.

Labour fought final yr’s UK common election with a manifesto pledge to decrease Brexit-related limitations and pink tape for the export of meals and farm merchandise to the European Union.

The query has at all times been how deep such an settlement could be. It might be settled within the coming weeks, although agency choices haven’t but been made.

The Conservatives have voiced anger at reviews of a possible new deal on UK-EU commerce, with shadow international secretary Dame Priti Patel telling MPs that the federal government was “bending the knee to the EU”.

The Liberal Democrats have mentioned the federal government will not be doing sufficient to clean commerce with the EU.