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Economic Fallout Looms as Washington Prepares “Liberation Day” Tariff Hike
The UK is preparing for imminent US tariffs as President Donald Trump is set to unveil sweeping global trade measures this week, Downing Street confirmed. Talks to prevent Britain from being caught in the crossfire are ongoing, but officials acknowledge that tariffs are likely unavoidable.
UK on High Alert as US Tariffs Approach
Prime Minister Keir Starmer’s spokesperson stated that the British government has been actively preparing for all possible outcomes ahead of Trump’s announcement. Negotiations between London and Washington will continue beyond Wednesday, April 2, the day Trump has dubbed “Liberation Day.”
The anticipated tariffs include:
Higher levies on aluminium, steel, and automobiles
Increased tariffs on all Chinese imports
New reciprocal tariff rates to counter global trade imbalances
Starmer-Trump Call: No Quick Resolution
Starmer spoke with Trump on Sunday in what Downing Street called a “productive discussion.” However, British officials downplayed the likelihood of immediate retaliation, warning that a trade war could destabilize global markets and hurt economic growth.
The UK Office for Budget Responsibility (OBR) cautioned that these tariffs could shrink the British economy by up to 1%, eroding nearly all of the government’s fiscal buffer.
What’s at Stake for the UK?
Britain, with its heavy reliance on international trade, faces serious economic risks if Trump’s tariff plan goes forward:
- Reduced exports to the US due to higher trade barriers
- Disruptions to UK manufacturing supply chains
- Potential retaliatory measures from the UK and EU
Despite efforts to secure exemptions, Britain’s position remains uncertain. As tensions escalate, businesses and policymakers alike are bracing for impact.
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