London — Britain expects to be hit by US President Donald Trump’s plans to impose global tariffs this week and the government has been preparing for all eventualities, Prime Minister Keir Starmer’s office said on Monday.
Talks between Britain and the US to negotiate a new economic deal that would avert the tariffs are expected to continue beyond Wednesday, when Trump is expected to unveil the worldwide tariffs, Starmer’s spokesperson said.
“We have been actively preparing for all eventualities ahead of the expected announcement from President Trump this week, which (we) would expect the UK to be impacted alongside other countries,” the spokesperson said.
Trump is set to announce new reciprocal tariff rates on what he has called “Liberation Day” on April 2, after implementing levies on aluminium, steel and vehicles, along with increased tariffs on all goods from China.
The action aims to shrink a $1.2-trillion global goods trade deficit by raising US tariffs to levels charged by other countries and counteracting their nontariff trade barriers.
Starmer said he held a “productive” phone call with Trump on Sunday regarding the tariffs.
Though British ministers have said no options are off the table in response to any such tariffs, they have played down the likelihood of immediate retaliation against the US, arguing that a trade war is bad for global economic growth.
Britain’s Office for Budget Responsibility (OBR) said last week higher US import tariffs would harm the UK’s economic activity and would wipe out almost all of the government’s fiscal buffer.
The OBR said US tariffs on its trade partners could cut the size of Britain’s economy — which is exposed to swings in international trade — by as much as 1%.
Reuters
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