With Donald Trump’s tariff policies threatening to disrupt the balance of global markets, the UK government is rushing to contain the prospective damage to the country’s economy. UK Prime Minister Keir Starmer aims to unveil detailed plans later this week outlining how he intends to assist British business and protect the economy from the pernicious new taxes. The urgency is driven by the speed of the implementation of Trump’s trade policies, which have resulted in a steep decline in stock markets and have sparked fears of a recession in global trade.
“Dancing Out of Control—Swift Global Actions Amid Economic Woes”
Treasury Minister Darren Jones disclosed that Starmer will “say more,” expanding the ongoing conversations he has had with the business community. The UK’s border is inflating further with a 10% import duty now charged on a majority of goods and a 25% tax already imposed on foreign cars. These factors are causing the British government to prep for a whole host of economic measures. As stated in the piece he published in the Sunday Telegraph, Starmer said, “The world as we know it has gone,” and that “decades-long assumptions we used to trust can certainly no longer be assumed to be true.” This clearly marks a shift towards a more assertive industrial strategy.
Brexit Dividend Emerges, Industrial Strategy Accelerated
The government is leaning towards speeding up parts of the industrial strategy, which was set to be announced in summer, to counter the evolving issues of tariffs. Jones has labelled as a “Brexit dividend” the lower 10% of the UK tariff rate in comparison to the EU’s 20% increase. But Jones insisted that the UK will have “strong bridges” with Washington and Brussels, avoiding the need to choose between the two trading partners.
Concerns Over The Trade Deal While Globalization ‘Comes To An End’
Globalization “as we know it” has “come to an end,” is what Jones added, indicating a change of pace on the international trade front. The UK government, while eager to secure a trade deal with the US, faces potential disagreements around food standards and regulations on online safety. The White House’s fact sheet has already pointed out the UK’s “non-science-based standards” against US beef and poultry exports as problematic. Still, the UK’s online safety laws and food standards will remain intact, according to Jones.
Parliamentary Oversight Needed Amid Suspense of a Trade Deal
Liberal Democrats are pushing for a parliamentary vote on any trade agreements made between London and Washington, claiming that vital standards may be compromised. Furthermore, Deputy Cooper added, “MPs must be given a say on any government deal with Donald Trump,” pointing out that democratic oversight is necessary on decisions deemed “fundamental for the nation.”
Parliamentary Navigation Towards Controversial Trade Policies
While the UK is struggling with the implications of US President Trump’s tariffs, the UK government’s decisions will be at the focal point of attention. The UK’s dash towards a trade agreement with the US at the cost of all other economic relationships is bound to have severe consequences for the nation’s future economy. Trade experts expect the next week’s addresses from Starmer to affirm expectations and reveal how deep the government intends to dive into the region’s volatile trade waters.
