Displaying items by tag: global economy

Keir Starmer has cautioned that even if the UK secures a US trade deal or lower tariffs, it will not be enough to safeguard Britain’s economic future. In response to Donald Trump’s imposition of a 10% import tax on British goods, Starmer urged the UK to adapt to a changing global landscape by strengthening cooperation with Europe and diversifying trade partnerships. Trump later announced a 90-day pause on tariffs for most countries, though uncertainty remains. Global markets reacted with volatility, and the Bank of England warned of rising global financial risks. Despite the turmoil, Starmer reaffirmed the government's fiscal discipline. Rachel Reeves is also working to establish trade agreements, including a recent £400 million deal with India, and has planned high-level meetings in Washington and Brussels. The Government aims to boost UK growth by fostering new trade alliances while safeguarding vital interests like the NHS and digital taxation.

China has announced an 84% tariff on all US imports, up from 34%, in retaliation to Donald Trump’s increased tariffs on Chinese imports (now 104%). This move escalates tensions in the ongoing trade war and sent global stock markets into further decline. Global oil prices also fell, adding to fears of a recession. However, US markets later showed some recovery after treasury secretary Scott Bessent hinted at potential trade agreements with allies. Trump is encouraging businesses to move to the USA, claiming zero tariffs and favourable conditions for companies. While China has expressed reluctance to engage in a full-scale trade war, it said it needed to protect its economy. Despite concerns over higher inflation, Trump remains optimistic about revitalising US manufacturing. He has now announced a pause in imposing the harsher tariffs, which has encouraged the stock markets. For a view about what this pause will mean, see