- US President Trump plans to impose reciprocal tariffs on UK exports to the US in response to VAT charged on US imports to the UK.
- The British Chamber of Commerce warns that businesses in the automotive, pharmaceuticals, and food and drink sectors will be significantly impacted.
- Trump’s plan aims to address the US trade deficit and achieve “fair and reciprocal trade relations.”
- The US will counter non-reciprocal trading arrangements by determining equivalent reciprocal tariffs.
- The measures target “unfair, discriminatory, or extraterritorial taxes,” including VAT.
- The British Chamber of Commerce calls for a flexible and agile response from the UK government to avoid a trade war.
- International trade expert Totis Kotsonis argues that the US administration’s assertion that VAT is a tariff subject to retaliation is problematic.
- Kotsonis points out that VAT is a consumer tax aligned with WTO rules and that applying different tariffs based on product origin violates the WTO’s “most favoured nation” principle.
Source: pinsentmasons.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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