[Text/Observer Network, Zhang Jingjuan] The British government recently sought to pass an economic agreement to avoid the country becoming the object of the "reciprocal tariff" that the United States will push for on April 2nd, but it now seems unlikely.

According to a report by the Financial Times, UK Prime Minister Keir Starmer will inform his cabinet on April 1st to prepare for the US imposing tariffs on British export goods this week. Business and Trade Secretary Jonathan Reynolds warned that this is "a very serious and important moment" for the UK.

No. 10 Downing Street said that it is almost certain that President Trump will not exempt the UK from the new US tariffs on April 2nd, which may have far-reaching impacts on the UK economy.

The report stated that Starmer pinned hopes on reaching an economic agreement with the US to mitigate the impact of the tariffs, but weeks of trade negotiations and attempts to curry favor with Trump yielded no results.

Currently, the UK side is formulating plans to mitigate the impact of the global trade war.

Reynolds said that the UK will take anti-dumping measures to prevent cheap goods transferred from the US market from flooding into the UK.

In the meantime, the Office for Budget Responsibility (OBR) warned Chancellor of the Exchequer Rachel Reeves that if Trump launches a full-scale trade war, the UK's initial fiscal buffer of 9.9 billion pounds at the beginning of the year could be virtually wiped out.

On local time February 27th, 2025, Trump received Starmer at the White House. Agence France-Presse.

The White House will unveil details of comprehensive import tariffs on goods on April 2nd, which Trump calls "Liberation Day."

The report stated that UK Ambassador to the United States Peter Mandelson held talks with US officials at the White House on March 31st. No. 10 Downing Street said that discussions would continue until April 2nd.

However, Reynolds admitted on April 1st that the UK, like many other countries in the world, is likely to face the impact of Trump's new tariffs.

"No country in the world can avoid the impact of these tariffs, but the UK will continue to seek an economic agreement with the US," Reynolds said. This is not about flattery or indifference, but about pursuing national interests.

The report pointed out that unlike Canada and the EU's tough stance, Starmer has not yet indicated that he will impose retaliatory tariffs, trying to persuade the US that the UK, which maintains a balanced trade relationship with the US, should be given special treatment.

As part of the proposed agreement, the UK proposed reducing or eliminating the digital services tax, which collects approximately 800 million pounds annually and mainly affects US technology companies.

According to a report on the website of the UK Sun on March 31st, a high-ranking source said that the prime minister had already "pleaded" for both sides to spend more time finalizing the agreement.

However, insiders at No. 10 Downing Street denied this and said that the prime minister has never directly requested an exemption from tariffs when expressing his position to the US president during negotiations.

The Financial Times reported that Reynolds denied that concerns over freedom of speech in the UK affected trade negotiations, stating that such concerns were expressed by the US State Department rather than trade negotiators.

Previously, US officials met with anti-abortion activist Livia Tossici-Bolt in the UK. She violated the Public Order Act passed by the UK government in 2023 by conversing with strangers near a Bournemouth abortion clinic. Vice President Vance of the US expressed concern over this matter, stating that it was crucial for the UK to respect and protect freedom of speech.

But he told the BBC: "This is a very serious and important moment. That's why we are so determined to pursue our national interests." He said he was prepared to cancel tax exemptions for certain products to protect British companies.

The report noted that while the business community generally supports Starmer's "calm" approach to the tariff threat, the prime minister will face political pressure. Critics accused Starmer of trying to please the US president without receiving any rewards so far.

This article is an exclusive contribution by the Observer Network and cannot be reprinted without permission.

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