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Trump tariffs risk ‘really damaging impact’ on global economy – UK minister

02 Feb 2025 3 minute read
Donald Trump. Photo Anna Moneymaker

Donald Trump risks having a “really damaging impact” on the global economy as he pursues tariffs against the US’s nearest neighbours, a senior UK Cabinet minister has suggested.

The US president has introduced a 25% levy on goods coming from Mexico and Canada, and a 10% trade tax on Chinese goods, which will come into effect on Tuesday.

The penalties have sparked fears of a new era of trade wars across the globe.

Trade barriers

Home Secretary Yvette Cooper, the first senior British Government figure to respond to the announcement, said the UK wanted to break down trade barriers, not put them up.

Asked about Mr Trump’s announcement, she told the BBC’s Sunday with Laura Kuenssberg: “Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see.”

Canada and Mexico, the US’s nearest neighbours and largest trading partners, have both vowed to counter the levies with retaliatory tariffs of their own on US goods.

The US tariffs are aimed at forcing the countries into doing more to prevent illegal migration into America, as well as the flow of the drug fentanyl.

Critics of the trade penalties have warned they could also fuel inflation in the US economy, driving up prices.

Ms Cooper also told the BBC that the UK’s focus was “on building trade links and better trading relationships, and removing barriers to trade, with the US, and also with other European countries and with countries right across the world”.

“We want to reduce the barriers to trade, make it easier for businesses,” she added.

Opponents

The Government’s opponents have called for widely differing approaches to the potential threat that tariffs could also be placed on UK goods.

While the Liberal Democrats have called for the UK to agree a customs union with the EU, Conservative shadow business secretary Andrew Griffith said Sir Keir Starmer should pursue closer trade ties with the US.

The Prime Minister should “be rediverting his plane” from Belgium – where he will meet EU leaders on Monday – to Washington DC, the senior Tory said.

Ministers have previously said they do not believe the US will impose tariffs on the UK, as America does not have a trade deficit with Britain.

Sir Keir has, meanwhile, insisted the UK does not need to make a choice between closer ties with Europe or with the US.


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Donald
Donald
5 days ago

A question for the globalist free-trade loving Brexiteers.

Tariffs good, or tariffs bad?

If Trump is right that tariffs are needed to protect and grow domestic industry, why did Brexit sell a narrative that free trade would benefit ordinary working people?

Llyn
Llyn
5 days ago
Reply to  Donald

Those Brexiters who championed free trade also said the UK should establish closer links with Commonwealth countries and that leaving the EU would mean we could make our own decisions about our future.

Now they support tariff implementing Trump, who is attacking the Kingdom of Canada with huge tariffs and say we have no option but to follow everything Trump wants us to do.

Dai Ponty
Dai Ponty
5 days ago

Or as my old Gran would say he Trump is 19 shillings and 11 pence short of £1 or in todays money he is 99pence short of £1

Mab Meirion
Mab Meirion
5 days ago

One man against seven billion…that is one heck of a super villain…funny old world !

Brychan
Brychan
5 days ago

Value of British exports for 2024 were

1 European Union £278bn
2 United States £188bn
3 China £48bn
4 Switzerland £26bn
5 India £17bn
6 Australia £16bn
7 Canada £16bn
8 Singapore £15bn
9 United Arab Emirates £14bn
10 Japan £14bn
11 Saudi Arabia £13bn

Puts Trump into perspective under the lens of Brexit.

S Duggan
S Duggan
5 days ago

The UK will have to come off the fence. Grovel to Trump or woo the EU – won’t be able to do both. As Trump only thinks of himself first and the US second – he’s no politician to get into bed with. Europeans have to stick together and whether Farage and the Tories like it or not, we are all European on these islands.

Donald
Donald
5 days ago

The UK should impose pre-emptive tariffs in solidarity with Canada.

Jeff
Jeff
5 days ago

Seems Canada is aiming sanctions at red state goods and talk of regions getting together to take the fight to trump. He is already saying it might hurt the people in the us, a bit. Except people like musk, and other project 2025 billionaires.

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