The US president has introduced a 25% levy on goods coming from Mexico and Canada, and a 10% trade tax on Chinese goods, which will come into effect on Tuesday
The UK is aiming to maintain a “strong trading relationship” with the US, according to Sir Keir Starmer, in the wake of President Donald Trump’s decision to slap new tariffs on imports, raising the spectre of a trade war.
Mr Trump has instituted a 25% tariff on goods from Mexico and Canada along with a 10% trade tax on Chinese wares set to take effect on Tuesday. Both Canada and Mexico have promised to respond to these levies with their own retaliatory tariffs against US products. In turn, China has declared its intention to implement measures to safeguard its interests.
These penalties have precipitated concerns that the world may be entering a new era of trade conflicts. During a meeting at Chequers with German Chancellor Olaf Scholz, Sir Keir was quizzed about the tariffs. “It is early days. What I want to see is strong trading relations,” he remarked to members of the press.
Echoing this sentiment, the Prime Minister asserted: “In the discussions that I have had with President Trump, that is what we have centred on, a strong trading relationship. So it is very early days.”
Earlier, Home Secretary Yvette Cooper had voiced apprehension over the potential repercussions of Mr Trump’s actions, suggesting they could wreak havoc on the international economy.
When questioned about the President’s announcement on the BBC’s Sunday with Laura Kuenssberg programme, she stated: “Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see.”
The objective of the US tariffs is to apply pressure on its closest neighbours to step up efforts in curbing illegal migration to America and halting the influx of the opioid fentanyl.
Critics of the trade penalties have cautioned that they could stoke inflation in the US economy, leading to a surge in prices. Ms Cooper expressed to the BBC that the UK’s focus is “on building trade links and better trading relationships, and removing barriers to trade, with the US and also with other European countries and with countries right across the world”.
She further emphasised the aim to “reduce the barriers to trade, make it easier for businesses”. The Government’s adversaries have proposed varying strategies to counter the potential risk of tariffs being imposed on UK goods.
While the Liberal Democrats have advocated for the UK to establish a customs union with the EU, Conservative shadow business secretary Andrew Griffith suggested that Sir Keir Starmer should seek stronger trade relations with the US.
The Prime Minister should be redirecting his plane from Belgium, where he is scheduled to meet EU leaders on Monday, to Washington DC, stated the senior Tory.
Ministers have previously asserted that they do not anticipate the US will impose tariffs on the UK, as it does not have a trade deficit with Britain. On the other hand, Sir Keir has stated that the UK does not need to choose between fostering closer ties with Europe or with the US.