The UK is gearing up for potential economic fallout as President Donald Trump prepares to implement new tariffs on cars and car parts, which are set to take effect imminently. According to Downing Street, the prime minister’s official spokesman expressed that the UK does not rule out retaliatory measures while they continue to pursue negotiations for an economic deal with the United States.
In February, Starmer met with Trump at the White House to discuss various issues, including trade relationships. Following the latest developments, the spokesman shared that the conversations on a US-UK economic prosperity deal have been described as “constructive,” but these talks are likely to extend beyond the imminent tariff deadlines.
The tariffs, specifically a 25% import tax on vehicles, add to the existing economic strain, as the UK has already faced tariffs on steel and aluminium exports. President Trump has suggested a broader application of these tariffs, hinting they may affect all countries, not just those with significant trade imbalances with the US.
Amid these unsettling changes, the UK is striving for an exemption from the new tariffs. The UK government maintains that any decision regarding tariffs will be made with the national interest at heart. “We are preparing for all eventualities ahead of the announcement from President Trump,” the spokesman noted. “Our approach will remain calm and pragmatic, because a trade war with the US benefits no one. However, we are not ruling out any potential responses.”
Political opposition has arisen within the UK, with the Liberal Democrats urging the government to consider reciprocal tariffs in response to Trump’s policies. Party leader Sir Ed Davey emphasized the need for a united front with allies in Canada and the EU, stressing the importance of standing firm against potential bullying tactics from Trump. He stated, “Just asking nicely clearly doesn’t work with Trump; we must be prepared to act, including imposing tariffs if necessary, to protect our interests.”
As the UK navigates this complicated situation, all eyes will be on the outcome of the ongoing negotiations and the impact these tariffs will have on the British economy and its trade relations.