UK Response US Tariffs are escalating as Downing Street refuses to rule out firm retaliation against Washington. President Donald Trump recently announced a 15% global tariff starting this Tuesday. This sudden move follows a major US Supreme Court ruling. The court struck down previous trade measures, claiming the president overstepped his legal powers. Consequently, the UK government is reviewing all possible reciprocal actions. Officials still hope to avoid a full-scale trade war. However, they insist that no defensive option remains off the table.
Economic Fallout for Allies
The UK faces a unique disadvantage under this new 15% rate. Previously, Britain had successfully negotiated a 10% tariff deal with the United States. Think tank Global Trade Alert notes the UK will suffer more than others. In contrast, countries like China and Brazil may actually benefit. Industry experts say allies who secured early deals now face the most harm. Andy Haldane from the British Chamber of Commerce expressed deep concern. He stated the UK now sits near the bottom of the trade league table. “Stay connected to every major update — subscribe and follow us on the PhoenixQ website and across our social media platforms.”
Legal Maneuvers and New Laws
Trump is using Section 122 of the 1974 Trade Act for this levy. This legislation serves as a temporary solution to current legal hurdles. It differs from the laws used for specific sector agreements. Therefore, key sectors like cars, steel, and pharmaceuticals remain mostly safe. These industries represent the majority of UK-US trade volume. Nevertheless, businesses operating outside these specific sectors face immediate disruption. Manufacturers now demand urgent clarity on how the US will treat their exports.
Global Partners React
Meanwhile, the European Union has placed its own US trade deal on hold. EU officials cite a lack of legal certainty following the Supreme Court decision. President Trump responded to these moves with a stern warning on social media. He threatened even higher costs for any country that “plays games.” Despite this, US Trade Representative Greer expects partners to honor their existing agreements. He claims the deals remain good for all parties involved.
The UK government continues to seek constructive engagement with its counterparts. Officials are holding productive conversations at all levels of government. They aim to protect Britain’s competitive advantage in a volatile market. Furthermore, the UK response US tariffs will remain pragmatic yet firm. Industry leaders hope for a swift resolution to prevent further economic instability.
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