Even if Britain secures an agreement with the United States under President Donald Trump, lasting tariffs of 10 percent on British exports are a distinct possibility, according to advisors close to the American leader. Concerns among UK government officials are escalating that completely avoiding this levy may prove unattainable.
Senior US economic advisor Kevin Hassett indicated that the White House is currently engaged in trade discussions with approximately twenty nations, with both the United Kingdom and Australia considered frontrunners for potential deals. He cautioned, “I think everybody expects that the 10 percent baseline tariff is going to be the baseline. It is going to take some kind of extraordinary deal for the president to go below there.”
A high-ranking source within the UK government acknowledged the reduced optimism regarding the removal of these tariffs, highlighting a significant degree of unpredictability in the situation. As one official stated, “Things change by the day.”
Economic forecasts suggest that 10 percent tariffs and the potential for a broader global trade conflict could inflict a 0.6 percent reduction on Britain’s GDP—potentially nullifying recent announcements of economic growth.
Opposition leader Sir Keir Starmer, while confirming he hasn’t spoken with President Trump since the introduction of the tariffs, emphasized the strength of the Anglo-American alliance. “We have got a very strong relationship on defence, security, intelligence-sharing. No two countries are as closely aligned as ours.”
Recent Developments:
- US stocks experienced a significant surge following Trump’s recent shift in tariff policy.
- Political analysts have offered varied interpretations of the President’s actions, with some expressing concern about his decision-making process.
- Observers note a sense of disruption among “globalists” due to the sudden reversal on tariffs.
Chancellor Rachel Reeves reaffirmed the UK’s commitment to achieving the most advantageous possible trade agreement with the US.
“We continue to engage with our counterparts in the United States, and of course we want to secure the best deal possible for British jobs and British industry. And we are absolutely… resolved to do everything we can.”
Reeves stressed that while pursuing a US trade agreement remains a priority, the UK is simultaneously actively seeking to strengthen trading relationships with other partners worldwide.
She elaborated: “It’s why I hosted the Indian Finance Minister in London this week as part of our economic and financial dialogue, and to try and secure a free trade and investment treaty with India. It’s also why we are having a summit with the European Union in May to improve our trading relations. I’ll be travelling to Poland later today to meet with my finance minister counterparts from across Europe.”
