UK cautions against potential economic fallout from US trade policies under Trump

1/16/2025 7:21:11 AM

(MENAFN) The UK government has raised concerns over the possibility of a "tariff war" between the US and other countries, cautioning that such a conflict could lead to higher inflation and unemployment, with significant consequences for the British economy.

Jonathan Reynolds, the UK’s Business and Trade Secretary, spoke on Thursday about the country’s vulnerability to the effects of US tariffs, given its reliance on international trade and investment.

Reynolds’ remarks come as uncertainty grows regarding the trade policies of US President-elect Donald Trump, who is set to be inaugurated on Monday. During his campaign, Trump vowed to implement a blanket 20 percent tariff on all foreign goods to protect US industries.

However, experts have warned that such tariffs could lead to increased prices for American consumers, contributing to higher inflation.

While concerns persist about broader tariffs, UK officials are hopeful that Trump may target specific sectors or countries, potentially sparing the UK from significant economic damage.

Earlier, Trump denied reports suggesting his team was considering tariffs solely on essential imports.

Speaking to Sky News, Reynolds voiced concerns about the global consequences of Trump’s trade policies. “I am worried because the UK is a very globally oriented economy. The exposure, the danger to the UK, is actually greater than in some comparable countries,” Reynolds explained.

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