Britain anticipates that it will be affected by U.S. tariffs this week, according to a spokesperson for Prime Minister Keir Starmer. The government is preparing for various outcomes in light of President Donald Trump’s proposed global tariffs. Ongoing discussions between the UK and the U.S. are expected to continue past Wednesday, when Trump plans to announce these worldwide tariffs. The spokesman indicated that the UK is ready for potential impacts alongside other countries, emphasizing the need for preparation ahead of the announcement.
Trump is set to reveal new tariffs on what he has termed “Liberation Day” on April 2. This follows his previous implementation of tariffs on aluminum, steel, and automobiles, as well as increased tariffs on goods from China. The administration aims to address a $1.2 trillion global goods trade deficit by adjusting U.S. tariffs to match those of other nations while counteracting their non-tariff trade barriers. In an effort to avoid these tariffs, Starmer engaged in what Downing Street described as a “productive” conversation with Trump on Sunday.
While British officials maintain that no options will be excluded in response to potential tariffs, they downplay the chances of immediate retaliation. They argue that a trade war would be detrimental to global economic growth. According to Britain’s Office for Budget Responsibility (OBR), the imposition of higher U.S. import tariffs could negatively impact the UK’s economic activity and significantly reduce the government’s fiscal buffer. The OBR warns that U.S. tariffs on its trading partners could potentially shrink the UK economy, which is particularly vulnerable to fluctuations in international trade, by as much as 1%.