Political reporter Becky Morton brought to light the tension between the United Kingdom and the United States as President Donald Trump announced a 10% tariff on nearly all UK exports to the US. Despite ongoing negotiations for an economic deal, the UK government has not ruled out retaliating against these tariffs. The global stock markets have reacted negatively to this news, with higher rates being imposed on countries identified as the “worst offenders” in trade policies.
David Lammy, while meeting Nato counterparts in Brussels, expressed regret over the return to protectionism in the United States, a practice not seen for nearly a century. The implementation of tariffs is an effort to boost domestic industries by restricting foreign competition. While this may encourage buying local, critics argue that it could lead to increased prices as firms pass on the additional costs to consumers.
There seems to be a shift in the global economic landscape as acknowledged by Prime Minister Sir Keir Starmer. The UK government is disappointed by the tariffs imposed by the US on the UK, although they have indicated that the lower rate compared to other countries vindicates their approach. Other world leaders such as French President Emmanuel Macron have criticized President Trump’s decision as “brutal and unfounded.” Discussions are underway to strategize with international leaders on how to respond to these new tariffs.
As the UK government prepares a list of potential US products for retaliatory tariffs if necessary, negotiations with the US are seen as a preferable solution. Technology and agriculture are key focus areas in these discussions, with a potential revamp of taxes on global tech firms as part of a trade deal. The consequences of a trade war, with 20% tariffs between the US and the rest of the world, could significantly impact UK economic growth, potentially leading to tax hikes or spending cuts
Read the full article from The BBC here: Read More
