The British government is engaged in extensive discussions with the U.S. about what tariffs will mean for the UK, finance minister Rachel Reeves says.

President Donald Trump announced that a 25 per cent tariff on vehicles imported to the U.S. will come into effect on April 2.

Ms Reeves said the UK and U.S. economies are closely intertwined.

“The Prime Minister went to Washington just a couple of weeks ago and met the U.S. president. We are also now having extensive talks with our counterparts in the U.S. to protect trade between our countries; those conversations will continue.

Obviously, the announcements of tariffs are something that the U.S. plan to bring in next week, but we are in discussions about what that means for the UK,” Ms Reeves told Times Radio.

She added, “A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined.

“I believe we make this case to the United States that free trade, or fair trade, is good for both of our countries, but let’s see where we get to in the next few days.”

Around four out of five cars made in the UK are exported.

Figures from industry body the Society of Motor Manufacturers and Traders showed the U.S. was the second largest export market after the EU for cars built in the UK.

Some 16.9 per cent of UK car exports were to the U.S. last year.

Jaguar Land Rover could be one of the UK vehicle manufacturers most affected by tariffs. 

(dpa/NAN)