The United Kingdom Prepares for the Impact of Tariffs Announced by Donald Trump
The United Kingdom should “expect to be impacted” by the tariffs that the administration of President Donald Trump is set to impose, a spokesperson for the British Prime Minister indicated on Monday. In the absence of a trade agreement between the two countries, the UK will be affected by tariffs on a wide range of products, which will come into effect on April 2, a date that President Trump has referred to as “liberation day.”
The British government had hoped to quickly secure a trade agreement with the United States in order to obtain an exemption for British businesses. “We are preparing for all eventualities in anticipation of the announcements expected from President Trump,” the Prime Minister’s spokesperson stated.
The Office for Budget Responsibility (OBR), the UK agency responsible for monitoring public spending, estimated that American tariffs could reduce the UK’s GDP growth by 0.6% by 2026. This figure could rise to 1% if the British government decides to impose retaliatory tariffs. The UK exports over £60 billion worth of goods to the United States each year.
Discussions between London and Washington are ongoing this week in hopes of reaching an agreement in the coming weeks. British Prime Minister Keir Starmer even held a phone conversation with President Trump on this matter on Sunday. A source from Downing Street clarified that the UK “is not in the same situation as the European Union” and that, consequently, London will react “calmly and serenely” to any announcements regarding the American tariffs. “We will pursue our negotiations with the United States vigorously, but we reserve the right to engage in retaliation,” the same source added.
Negotiations between the UK and the United States aimed at establishing a “economic prosperity” agreement have been described as “productive” by Downing Street, which also emphasized that discussions will continue at a steady pace.
