Business Secretary Peter Kyle has warned that the final stages of a UK-US trade deal could be delayed by former President Donald Trump's latest threat to impose tariffs on British goods.
Tariff Threat Saps Negotiation Energy
In an interview with City AM, Kyle stated that the White House's move to charge a 10 per cent duty on UK and European exports would consume a "lot of energy" within his department. This follows European resistance to Trump's controversial plans regarding Greenland.
"One of the challenges – when we have to then really focus on a new threat, on a new tariff announcement – means that it of course is going to take up… a lot of energy in my team, and of course in theirs [the US administration] as well," Kyle said during the interview at the headquarters of Kraken, an Octopus Energy spin-off.
A 'Lose-Lose' Situation for Economies
The Business Secretary echoed Prime Minister Keir Starmer's criticism, branding the escalating tariff tension as "lose-lose" for both the British and American economies. Starmer had earlier called America's threats "completely wrong" but ruled out immediate retaliatory measures, urging "calm discussion" instead.
Kyle urged businesses to trust the government to secure another exemption, referencing the UK's success in becoming the first major economy to sign a bilateral deal with the Trump administration in May 2026 after his 'liberation day' tariff announcement.
"Tariffs are a lose, lose, and the first port of call of the loss is businesses," Kyle emphasised. "Then it filters down into the economy, then it filters down into people’s the money in people’s pockets."
Final Deal Hurdles and Wider Fallout
The UK-US trade deal was partially ratified in June 2026, but key elements remain unresolved. Disagreements over digital services and agriculture, related to standards and market access, are still in limbo.
The situation has been further complicated by the White House pulling out of the Tech Prosperity Deal signed during Trump's state visit, a move seen as increasing pressure on UK negotiators. Reports also suggest US officials are pushing for the UK to accept American standards on food and manufacturing, which could conflict with Starmer's goal of closer UK-EU relations.
Meanwhile, the European Union has promised a firm response to any new trade barriers and is reportedly preparing a €93bn (£80bn) package of retaliatory measures, setting the stage for a potential wider trade conflict.
