Business secretary to meet JCB boss after concerns raised about US tariffs
Jonathan Reynolds will meet the boss of JCB after the company was among those which raised the alarm about the impact of new US tariffs on British businesses.
JCB chief executive Graeme Macdonald called on the UK Government to get a “deal done quickly” with the US on steel, after hundreds of British goods became subject to new American tariffs over the weekend.
He is due to meet the Business Secretary on Tuesday to discuss the impact of the levies.
Some 400 categories of goods which contain steel and aluminium became subject to US tariffs over the weekend, including those made in the UK.
The categories cover goods which include metal parts, like garden furniture, children’s cribs, as well as shampoos and other products with packaging that contains aluminium.
British manufacturers have urged ministers to close a deal aimed at eliminating the metals tariffs, which UK and US negotiators did not finalise when the trade agreement between the two countries was signed in May.
Donald Trump raised other countries’ steel and aluminium tariffs to 50% earlier this year but the levy on British goods remained at 25%.
UK-based companies hope a deal could reduce the tariff rate to 0%.
JCB chief Mr Macdonald told the Sunday Times there was “chaos at the US ports right now” as British goods remained in limbo while officials implemented the new tariffs.
The JCB boss said: “They need to get a deal done quickly because this is very damaging to British industry.”
He added: “This has blindsided everybody. It’s blindsided us, it’s blindsided the UK Government, it’s definitely blindsided US customs.
“We’re not releasing our items until we have finalised our interpretation of the rules, and neither is anybody else. So there’s a huge backlog of imported goods in every port now in the US.”
A Government spokesperson said: “Thanks to our trade deal with the US, the UK is still the only country to have avoided 50% steel and aluminium tariffs but we are committed to going further to give industry the security they need, protect vital jobs and put more money in people’s pockets through the Plan for Change.
“We will continue to work with the US to get this deal implemented as soon as possible and in industry’s best interests.”
By David Lynch, PA Political Correspondent