Displaying items by tag: trade policy

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.

The Government has stated it will not immediately retaliate against the renewal of US steel and aluminium tariffs, instead opting for a measured approach. Trade minister Douglas Alexander emphasised the need for a 'cool and clear-headed' response rather than a knee-jerk reaction. The 25% tariffs, set to take effect from 12 March, are designed to reduce foreign imports and boost US steel production. While the UK only exports 10% of its steel to the US, certain specialist suppliers could face severe impacts; the tariffs could also lead to an influx of cheaper foreign steel into the UK, undercutting domestic manufacturers. In response, UK Steel and unions are urging the Government to increase domestic steel purchases and protect jobs. Other nations, including Canada and the EU, have condemned the tariffs and vowed retaliatory measures, while the UK remains committed to diplomatic engagement. Donald Trump, who imposed similar tariffs in 2018, has indicated no exemptions this time, except possibly for Australia.