MPs have called for the Government to maximise pressure on the US to secure relief from tariffs ahead of Donald Trump’s state visit to the UK next week.
The Commons Business and Trade Committee said next week’s visit is the moment to press the US President to agree on the final terms of the so-called economic prosperity deal.
The UK and US signed a trade deal in June that reduced tariffs on car and aerospace imports to the US, but failed to agree on terms for British steel, leaving tariffs on it at 25%.
In a report on the deal, the committee welcomed the Government securing swift tariff relief for key sectors.
“It is however now vital that Government maximises pressure on the United States — beginning and following the president’s state visit — to agree final terms for a lasting economic prosperity deal to end the threat of future sectoral tariffs, maximise predictability and that where the UK has secured terms which are second best to the EU, we aim to improve them,” they said.
Committee chairman Liam Byrne MP said the state visit is “no mere pageant”.
He said: “It is a test of whether Britain and America build a safer, richer future – or remain trapped in tariff fights that serve neither nation well. Sir Keir Starmer deserves credit for securing the economic prosperity deal.
“But we can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.”
The committee also called on the Government to secure agreements on aluminium and pharmaceuticals, and to ensure any final deal takes account of UK supply chains and the shift to low-carbon production.
It said the UK should use its US partnership to gain an advantage over China in artificial intelligence and defence technology, de-risk supply chains and greater security for critical minerals supplies.
“Britain’s science, AI and the City of London, joined with America’s tech giants and venture markets, could set the standards of this century and help secure western leadership over China for decades to come,” Byrne said.
“But that means we have got to turn paper promises into a binding bargain that ends the tariff tempest that is battering British exporters and investors.”
It comes as US financial firms have announced investments in the UK worth £1.25 billion before Trump’s state visit.
Citigroup has confirmed it will invest £1.1 billion across its UK operations, while S&P Global will put £4 million into its Manchester offices.
PayPal has confirmed a £150 million investment in product innovations and growth, and Bank of America will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland.
Alongside the new investment announcements, companies are committing to ramping up commercial activity between the US and UK in the coming years.
BlackRock is allocating £7 billion to the UK market over five years, while Rothesay is planning to double its investment in the US with another £7 billion in the coming years.
The investment and capital commitments line up some £20 billion trade between the two countries, with some £8 billion to come to the UK and £12 billion to go to the US, the Department for Business and Trade said.
Business and Trade Secretary Peter Kyle said: “These investments reflect the strength of our enduring ‘golden corridor’ with one of our closest trading partners, ahead of the US presidential state visit.”
Tech giants OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres during the visit next week.
Sam Altman, the boss of ChatGPT-maker OpenAI, and chipmaker Nvidia’s chief executive Jensen Huang are understood to be part of a delegation of US executives to join Trump.
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The US president’s two-day trip begins on Wednesday and includes an overnight stay at Windsor Castle.
A Government spokesperson said: “Our special relationship with the US remains strong.
“Thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs, and we continue to partner on technologies such as AI, quantum, and cyber security in our trillion-dollar tech sectors.
“We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets through the plan for change, as well as welcoming the president on this historic state visit.”
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