Media reports UK braces for fresh US tariffs
(MENAFN) The UK government is bracing for a new round of US tariffs expected to be announced by President Donald Trump later this week, according to multiple media reports. Though specific details remain unclear, estimates from Britain’s Office for Budget Responsibility suggest the new trade measures could shrink the UK’s economy by up to 1%. Additional tax increases may follow in the fall as a result of the anticipated trade restrictions, The Guardian reported.
President Trump is set to unveil the new tariffs on Wednesday as part of his so-called “Liberation Day” initiative. His administration aims to reduce the US’s $1.2 trillion trade deficit by imposing higher tariffs on imports and pushing back against non-tariff trade barriers used by other nations.
A spokesperson for British Prime Minister Keir Starmer confirmed that the UK has been “actively preparing for all eventualities” in anticipation of Trump’s announcement. Sources told The Guardian that while the UK is attempting to secure a trade deal with the US that would exempt it from further penalties, such an agreement is unlikely to be reached before the new measures are implemented.
“This is an unpredictable situation and an unpredictable administration,” one British official stated, adding that London is exploring all possible scenarios. The UK reportedly plans to avoid any immediate retaliation, in hopes of preserving ongoing negotiations with Washington.
After speaking with Trump on Sunday, PM Starmer described the conversation as part of “productive negotiations” and said both leaders agreed to maintain regular contact in the coming days.
Trump’s trade policy already includes a 25% tariff on steel imports, which has placed pressure on the UK’s last remaining virgin steel producer. The US president also plans to impose a 25% tariff on car imports—a move that could affect British luxury brands such as Aston Martin and Bentley.
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