Britain braced for worst from Donald Trump’s ‘Liberation Day’ trade war
Britain “must prepare for the worst” from new import tariffs, the foreign secretary David Lammy said yesterday as the world awaits the start of Donald Trump’s trade war. The United States president has threatened to impose fees of 20 per cent or more on imports from around the world with immediate effect in measures expected to be announced on Wednesday – which he has dubbed “Liberation Day”. Global market jitters continued over the potential impact of a trade war, as one study estimated it could cost the world £1.1 trillion.In Britain alone, 25,000 jobs are at risk according to the Institute of Public Policy Research (IPPR), which said the new White House trade policy would “completely destabilise the UK car manufacturing industry”.Meanwhile, Goldman Sachs analysts expected Britain’s GDP to suffer a greater hit than previously feared even if a UK trade deal were agreed, due to “larger negative spillovers” from tariffs levied against the European Union. As a result, the bank now expects 0.8 per cent of UK growth this year and 1.2 per cent in 2026 – down from 0.9 and 1.3 respectively.Chancellor Rachel Reeves told a cabinet meeting that there would be a serious impact from the tariffs.And while business secretary Jonathan Reynolds tried to be optimistic about the prospect of a UK-US deal, he was unable to give a timeline on when one might be completed. Ministers were also forced to deny the Trump administration was making demands about free speech in the UK as part of any potential trade deal.Mr Trump has previously announced a 25 per cent tax will be introduced on all cars imported to the US. He has also announced similar tariffs on steel and aluminium.However, the announcement on Wednesday is expected to be far more wide-ranging.Foreign secretary David Lammy More