UK officials label trade documents ‘secret' to shield from US eyes amid Trump tariff war

The Guardian

16-04-2025

UK officials are tightening security when handling sensitive trade documents to prevent them from falling into US hands amid Donald Trump's tariff war, the Guardian can reveal.
In an indication of the strains on the 'special relationship', British civil servants have changed document-handling guidance, adding higher classifications to some trade negotiation documents in order to better shield them from American eyes, sources told the Guardian.
The White House has upended global financial markets and torn up key relationships, with unpredictable and rapidly changing taxes on trading partners including China, the EU and the UK.
Officials were told that the change in protocols was specifically related to tensions over important issues on trade and foreign policy between Washington and London, sources said.
Keir Starmer has prioritised striking a trade deal with Washington, opting not to retaliate over Trump's decision to impose 10% tariffs on goods exported to the US, and 25% tariffs on UK car and steel exports, instead offering concessions on areas including digital taxes and agriculture.
JD Vance said on Tuesday he believed a mutually beneficial US-UK trade deal was within reach. The US vice-president said officials were 'certainly working very hard with Keir Starmer's government' on a trade deal, adding that it was an 'important relationship'.
'There's a real cultural affinity,' Vance said. 'And, of course, fundamentally, America is an anglo country. I think there's a good chance that, yes, we'll come to a great agreement that's in the best interest of both countries.'
However, behind the scenes concern is growing over the vulnerability of UK industries and companies to Trump's 'America first' agenda.
Before Trump's inauguration, UK trade documents related to US talks were generally marked 'Official – sensitive (UK eyes only)', according to examples seen by the Guardian, and officials were allowed to share these on internal email chains. This classification stood while British officials attempted to negotiate with Joe Biden's administration, even after a full-blown trade deal was ruled out by the White House.
Now, a far greater proportion of documents and correspondence detailing the negotiating positions being discussed by officials from No 10, the Foreign Office and the Department for Business and Trade come with additional handling instructions to avoid US interception, with some classified as 'secret' and 'top secret', sources said. These classifications also carry different guidance on how documents may be shared digitally, in order to avoid interception.
Companies with commercial interests in the UK have also been told to take additional precautions in how they share information with the trade department and No 10, senior business sources said. These include large pharmaceutical companies with operations in the UK and EU.
A Department for Business and Trade spokesperson said: 'The US is an indispensable ally and negotiations on an economic prosperity deal that strengthens our existing trading relationship continue.'
Wider questions have been asked about whether the special relationship between the UK and US can withstand increasingly divergent policies on Russian hostility, as well as deep criticisms of Nato and defence collaboration. On trade, pressures are mounting in sensitive areas such as car manufacturing and pharmaceuticals.
Other reports suggest the European Commission has also changed its perspective on the risks of sensitive or secret information being intercepted by the US. Commission employees have been issued with burner phones if they are visiting the US, the Financial Times has reported.
So close has the UK and US position been on defence and security in recent years that secure government material is sometimes marked 'UK/US only', or given a 'Five Eyes' marking, in reference to the intelligence-sharing collective made up of the US, UK, Australia, New Zealand and Canada. So far, the Guardian has only established a change in document-handling related to trade discussions.
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Trump's plan to reboot domestic industry, including in automotive and pharmaceutical manufacturing, has caused consternation among foreign governments keen to protect domestic industries and jobs while trying to strike trade deals to protect against heavy tariffs.
Trump has sought to defend his decision to put vast tariffs in place, saying there would be a 'transition cost' from his policies.
The US president also said he would 'love' to make a deal with China and that, in his view, he and the Chinese president, Xi Jinping, would 'end up working out something that's very good for both countries'.
In a move regarded by some observers as an attempt to soothe market reactions, including a rise in US government borrowing costs, Trump said last week that he would delay further tariffs for 90 days. The European Commission president, Ursula von der Leyen, said the EU would also delay its response to US tariffs.
Until July, the EU will face a 10% duty on exports to the US, rather than the 20% 'reciprocal tariff' rate that was in force for a matter of hours, until Trump's reversal last Wednesday. US duties of 25% tariffs on steel, aluminium and cars are still in place, however.
Despite suggestions that Trump may be chastened by the markets' volatile response to his trade policies, the president's incremental steps have increased duties on Chinese imports to 145%. China responded on Friday by announcing it would increase tariffs on US goods to 125%. The announcement from the Chinese commerce ministry also suggested that it would not pursue higher tariffs in any further retaliatory steps against the US, adding that 'at the current tariff level, there is no market acceptance for US goods exported to China'.
'If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,' it said, flagging that there were other countermeasures to come. Xi, meanwhile, urged the EU to resist Trump's 'bullying'.