The UK Liberal Democrats have urged the government to release its analysis of the impact of potential trade tariffs imposed by incoming US President Donald Trump. Business and Trade Secretary Jonathan Reynolds has previously warned that such moves could lead to inflation and increased unemployment in the UK and emphasised that the government has already taken advice. The Liberal Democrats are now set to table a “humble address” motion in parliament to demand official publication of internal government assessments. Despite its rarity, the motion has been used to obtain important Brexit-related documents in the past.
The call by the Liberal Democrats comes in the wake of pledges by Trump to levy up to 20% tariffs on global imports after he takes office on Monday. He has also indicated potential 60% tariffs on China, a reprise of similar moves undertaken in his first stint as president, between 2017 and 2021. The Lib Dems are basing their call on a recent study which suggests that such tariffs on UK exports to the US could cost the economy £22bn per year.
Lib Dem leader Sir Ed Davey believes that voters have a right to be kept informed about any threats to the UK economy and to their livelihoods. He has also reiterated his earlier calls for a new UK-EU customs union, closing ranks against Trump and potentially blunting the impact of any US trade restrictions. As reported earlier, Trump has already indicated that he plans to approve further tariffs against the EU.
The Liberal Democrats’ move is set to pile further pressure on the UK government ahead of more troubling times in a post-Brexit world. Although Prime Minister Sir Keir Starmer has been keen to walk a fine line between UK ties with the US and the EU, the controversial nature of Trump, combined with potential trade difficulties, may force a rethink on that strategy in the coming weeks and months.
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