British Prime Minister Keir Starmer and ministers are preparing for potential new US tariffs under Donald Trump's administration. The tariffs are expected to target all countries with a trade imbalance with the US.
Introduction of New US Tariffs
Donald Trump plans to impose 25% tariffs on car, steel, and aluminum imports. The new tariffs are expected to target countries with a trade imbalance with the US or those seen as avoiding fair taxation policies.
UK's Stance on Tariff Issues
Keir Starmer emphasized that the UK 'reserves the right' to take countermeasures to protect national interests. According to Dave Pares, the prime minister's spokesman, the UK team is actively preparing for the potential implementation of tariffs. 'Our trade teams continue to have constructive discussions to agree on a UK-US economic prosperity deal, but we will only make agreements that reflect this government's mandate to ensure the UK's economic stability.'
Expected Economic Impact
According to the Office for Budget Responsibility, if the US imposes a reciprocal 20% increase in tariffs on all trade partners, the UK's economy would decrease by 1%. This would negatively affect tax revenue despite an increase in tariff revenue.
The UK government has mobilized resources to prepare for all possible scenarios. Ministers are confident in the need to protect British industry and dispute the need for a trade war aimed at undermining the country's economic interests.
