London (Eurotoday) – Senior diplomats from both the UK and European Union are urging UK Prime Minister Keir Starmer to “resist firmly” should US President Donald Trump proceed with plans to impose tariffs on British exports. According to a report by The Guardian, there are growing concerns within No 10 Downing Street that Trump’s trade measures could spark a global trade war, posing serious risks to the UK economy.
How Will Trump’s Tariffs Impact the UK Economy?
British officials have been working urgently in both London and Washington to persuade Trump to reconsider the imposition of sweeping 25 percent tariffs on key British exports such as cars, steel, and aluminum. In addition, there is concern over Trump’s broader plan to implement reciprocal tariffs on any country that applies a value-added tax (VAT) on US exports — a policy that would directly affect both the UK and EU member states. It’s worth noting that the US does not apply VAT on its own imports.
Last week, the UK’s Office for Budget Responsibility (OBR) warned that if a 20 percent rise in tariffs were to take place between the US and the global market, UK economic growth could be slashed by as much as 1 percent. Amid this uncertainty, Prime Minister Starmer is reportedly adopting a wait-and-see approach, weighing his response based on the scale and specifics of the tariffs imposed.
How Are Officials Urging Starmer to Resist Trump?
Government sources cited by The Guardian indicated that Prime Minister Starmer has been advised to defend British interests assertively if Trump’s tariffs target the UK. However, his advisors also noted that Starmer might take a “pragmatic” stance initially — potentially avoiding immediate retaliation in favor of a diplomatic approach aimed at influencing Trump over time.
There is also speculation that Starmer may consider engaging in broader trade negotiations with the US to mitigate long-term economic risks.
The Liberal Democrats, meanwhile, have criticized any moves to “appease Trump,” warning Starmer against slashing taxes for American tech companies while simultaneously implementing harsh domestic policies, including cuts to welfare programs for disabled individuals.
Recent polling following Chancellor Rachel Reeves’s spring statement reveals a pessimistic outlook among UK voters: only 11 percent believe the economy will improve in the coming year; 23 percent think it will remain the same; and 61 percent expect it to deteriorate.
Furthermore, UK voters rated Britain’s economic performance poorly when compared to global powers. Just 9 percent believe the UK economy is stronger than China’s, while 10 percent view them as equal, and 43 percent rate the UK economy as worse.
Eurotoday is a daily online publication focused on European and international affairs. Through independent journalism and a Europe-wide lens, Eurotoday analyses EU policy, key developments in member states, and the broader global agenda with a distinctly European perspective.
Leave a Reply