Britain is preparing for a major economic blow after President Donald Trump refused to exempt the United Kingdom from a wave of new global trade tariffs, as Downing Street now expected to reach 20 percent on Wednesday – what Trump described “Tahrir's Day.”
Despite weeks of negotiations behind the scenes, the United States refused to sign a proposed economic deal in the United Kingdom who were hoping to secure points of comprehensive measures. The officials said the deal, which includes concessions on artificial intelligence, taxes and agriculture, is still “on the table”, but Trump chose a comprehensive tariff without exemptions to increase the political impact.
The budget responsibility office warned last week that the imposition of customs duties could provide a pure output of some of the resulting result by 0.6 percent, equivalent to 18 billion pounds, and completely erase the area of 9.9 billion pounds, which Chancellor Rachel Reeves was carved in its spring statement – it is possible that more tax taxes or boules are likely to impose public spending.
While Prime Minister Kiir Starmer was keen to develop relations with Trump and has so far refrained from public criticism, the pressure is escalating for a more accurate response. Downting Street insists that Starmer “is acting in the national interest”, but it may delay revenge in the hope of reaching a long -term trade deal in the United Kingdom.
The ministers are increasingly concerned about a possible increase in cheap foreign imports, originally allocated to the United States, which floods UK markets. Plans to protect the main sectors – including cars, ceramics and heavy machines – are placed by imposing import quotas or emergency tariffs to prevent market disturbance.
The government has ruled out the reduction of animal care standards in the UK, but it may be ready to provide discounts in customs tariffs on American agricultural imports, including beef, chicken, and pork, as part of a future trade agreement.
Industrial bodies and trade experts urge government to act quickly. Rachel Timins warned of the United Kingdom that the US tariff can provide a “double sensation” to British exporters by increasing costs abroad while exposing it to more foreign competition at home. Meanwhile, the Commercial Treatment Authority has 15 active investigations in the alleged “dumping” – 11 of which relate to Chinese goods – and may struggle to deal with a possible increase in new cases.
Peter Navarro, the Trump's chief commercial consultant, confirmed that the administration does not have plans to alleviate its position, claiming that the customs tariff will generate revenues of $ 6 trillion over the next decade and financing US tax cuts. “The definitions are tax cuts. Definitions are jobs,” he said.
Former Ambassador, Lord Kim Darotikh, said that Starmer should learn from the response of Canadian Prime Minister Mark Carney, which helped to break Trump's approach. “If Trump sees that concessions work, it will use definitions over and over again.”
Trump's decision has a sharp decrease in global stock markets, where FTSE lost 100 1.4 %, while investors flocked to guaranteed assets such as gold, which has been preparing for the largest quarterly profit for nearly four decades.
With the timing of the tariff hour, Starmer is now facing an accurate budget law: protecting the UK's business from economic repercussions without hindering the fragile via -Atlantic relations. But with industry's confidence already vibrating, the economy is still fragile, the cost of waiting will soon exceed the cost of work.
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