Trump state visit to go ahead despite fears over US ‘liberation day’ tariffs of up to 25 per cent

1 April 2025, 14:54 | Updated: 2 April 2025, 11:55

Donald Trump's proposed state visit to the UK is set to go ahead despite concerns over looming US ‘liberation day’ tariffs.

Concerns over the US President's impending state visit come as aggressive tariffs of up to 25 per cent are set to be imposed on the UK and other nations from Wednesday.

Downing Street has now confirmed that Trump's second state visit to the UK would not be cancelled in response to the impending threat of financial levies.

Recent weeks have seen Trump repeatedly promise to impose reciprocal dollar-for-dollar tariffs against nations that tax US goods.

On Tuesday, Sir Keir Starmer suggested the UK was "working hard on an economic deal" but admitted: "the likelihood is there will be tariffs."

"Nobody welcomes that, nobody wants a trade war. But I have to act in the national interest and that means all options have to remain on the table."

However, the proposed tariffs hold the potential to wipe out Rachel Reeves's '£10 billion headroom', with the Chancellor warned it could severely impact the balancing of Britain's finances.

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Ahead of the expected tariffs on imported goods, the Chancellor is said to have engaged in talks with her US counterpart, Scott Bessent.

It comes as Downing Street suggested it is unfair to draw parallels between tariff negotiations and the invitation for Donald Trump to make a state visit to the UK.

Asked whether the invitation could be withdrawn if there is no deal, the Prime Minister's official spokesman said: "I wouldn't draw any any link between the two.

"Obviously, the state visit is a matter for the Palace, as you know."

Downing Street added: "You'll have seen that the Prime Minister was delighted to extend His Majesty the King's invitation for a historic state visit during his visit to to the White House."

"But when it comes to these talks, we'll obviously continue to have these conversations.

"We'll obviously continue them in the national interest, and we'll obviously provide an update as and when we have one."

It comes as Foreign Secretary David Lammy said the UK must "prepare for the worst" over tariffs from the US as "intense conversations" continue on a possible economic agreement.

Liberal Democrat foreign affairs spokesman Calum Miller, who represents Bicester and Woodstock, told the Commons: "My constituents at the BMW Mini plant in Cowley are deeply concerned about the impact of Donald Trump's global tariff war.

"The uncertainty the plant faces is made much worse by the red tape that now inhibits integrated car production with suppliers in the EU.

"So does the Foreign Secretary agree that in addition to a robust response to the White House, the best step the Government can take to support British businesses would be to start talks on a bespoke UK-EU customs union without delay?"

Mr Lammy replied: "We are an open-trading nation. We have been that under successive governments. It's hugely important at this time that we continue the intense conversations we're having with the US administration on getting an economic agreement but of course we prepare for the worst - all options remain on the table, as the Prime Minister indicated again just yesterday.

"But it's also right that the Business Secretary and I and others across Government continue to engage with business and industry so we can give them the best support at what will be a turbulent economic time, not just for our own country but of course much of the world."