Britain will not impose retaliatory tariffs on the US because it believes that doing so would simply infuriate President-elect Donald Trump, resulting in a trade war with no benefits for the UK.
Trump has declared that upon his assumption of the presidency, he will implement universal tariffs of up to 20 percent on all imports. This would result in a £21.5 billion loss for the United Kingdom and a rise in UK inflation. The Times has been informed that ministers are opposed to adopting a "protectionist" stance, after having convened to discuss strategies to respond with tariffs on US imports to the UK. British lawmakers are apprehensive that any reaction could result in a more punitive response from Trump.
Because British economists predicted that it would increase inflation in the United States, the UK government anticipated that Trump would modify his universal tariff policy. Ministers anticipate that he will implement a sector-by-sector strategy, with an emphasis on tariffs on automobiles, technology, steel, and aluminum.
Although such an approach would have a detrimental effect on the UK economy, particularly in industries such as steel and electric vehicles, it would be less severe than a blanket tariff. Services, including finance, insurance, and consulting, account for two-thirds of the United Kingdom's annual £188 billion exports to the United States, as opposed to goods.
It is anticipated that the EU will implement retaliatory tariffs if Trump proceeds with his proposed tariffs on products from the EU. It has devised strategies to levy tariffs on imports from the United States, including Harley-Davidson motorcycles, Levi's denim jeans, and Kentucky bourbon, the paper said.
Trump has declared that upon his assumption of the presidency, he will implement universal tariffs of up to 20 percent on all imports. This would result in a £21.5 billion loss for the United Kingdom and a rise in UK inflation. The Times has been informed that ministers are opposed to adopting a "protectionist" stance, after having convened to discuss strategies to respond with tariffs on US imports to the UK. British lawmakers are apprehensive that any reaction could result in a more punitive response from Trump.
Because British economists predicted that it would increase inflation in the United States, the UK government anticipated that Trump would modify his universal tariff policy. Ministers anticipate that he will implement a sector-by-sector strategy, with an emphasis on tariffs on automobiles, technology, steel, and aluminum.
Although such an approach would have a detrimental effect on the UK economy, particularly in industries such as steel and electric vehicles, it would be less severe than a blanket tariff. Services, including finance, insurance, and consulting, account for two-thirds of the United Kingdom's annual £188 billion exports to the United States, as opposed to goods.
It is anticipated that the EU will implement retaliatory tariffs if Trump proceeds with his proposed tariffs on products from the EU. It has devised strategies to levy tariffs on imports from the United States, including Harley-Davidson motorcycles, Levi's denim jeans, and Kentucky bourbon, the paper said.
