London (Brussels Morning Newspaper) – Senior UK and European Union diplomats are advising UK Prime Minister Keir Starmer to “resist firmly” against US President Donald Trump if he imposes tariffs on UK exports. As reported by The Guardian, there have been concerns in No 10 that the American president could ignite a global trade war, which would have a disastrous effect on the UK economy.
According to the report, British government officials in London and Washington worked urgently this weekend to persuade Trump not to impose tariffs on key British industries. The US president has already revealed plans for 25 percent blanket tariffs on imports of cars, steel, and aluminum to the United States.
How will Trump’s tariffs impact the UK economy?
British officials are worried about Washington’s plan to impose reciprocal 25 per cent tariffs on all countries that apply any form of VAT on US exports. The nations targeted by Trump include the United Kingdom and EU member states. It is important to note that the United States does not impose VAT on its imports.
The Office for Budget Responsibility (OBR) cautioned last week that a 20 percent rise in tariffs between the US and the rest of the world could reduce the UK’s growth by 1 per cent. Amidst all this, Starmer is reportedly waiting to assess how to respond, depending on the level of tariffs that may be imposed on the UK.
How are officials urging Starmer to resist Trump?
As reported by The Guardian, government officials advised the British premier to be prepared to “act in the national interest” if Trump strikes the UK hard. However, his team also suggested that Starmer will be “pragmatic” if necessary – implying he may not retaliate right away, in the hope of persuading Trump over time. The officials also believe Starmer will be considering a broader US-UK trade deal.
Several politicians from the Liberal Democrats have already cautioned the UK PM to stop “appeasing Trump” by lowering a tax for US tech companies while simultaneously implementing severe welfare cuts, including to disabled people.
Polls executed by the same UK outlet following Chancellor of the Exchequer Rachel Reeves’s spring statement show that 11 per cent of UK voters expect the economy to improve over the next 12 months, with 23 per cent saying it will remain the same and 61 per cent believing it will worsen.
In addition to this, British voters rated the UK economy relatively poorly compared to other major economic nations, particularly China. Only 9 per cent of UK voters rate the UK economy better than China’s, with 10 per cent saying it is about the same and 43 per cent saying it is worse.
