Mon, 31 Mar 2025

Mon, 31 Mar 2025 UK expects to be hit by Trump tariffs, No 10 says

Downing Street does not rule out retaliating if new tariffs are imposed on Wednesday.

* The UK expects to be hit by new US tariffs on Wednesday, with Downing Street saying a deal to exempt British goods won't be reached in time.
* US President Donald Trump has announced plans to unveil new tariffs on 2 April, in addition to a 25% levy on car and car parts already announced.
* Tariffs are expected to affect not just countries with trade imbalances with the US but all countries, according to Trump.
* The Prime Minister's official spokesman said talks on an economic deal between the UK and US had been "constructive" but did not rule out retaliating if tariffs were imposed on the UK.
* If the UK is hit by tariffs, it will likely lead to a trade war with the US, which could wipe billions off economic growth and all but eliminate headroom for Chancellor Rachel Reeves' spending rules.
* The independent Office for Budget Responsibility (OBR) has forecast that GDP would be 0.6% lower than expected this year and 1% lower next year in the most "severe" scenario of a trade war.
* Tariffs could hit British luxury car makers such as Rolls-Royce and Aston Martin, with US President Trump arguing his measures will help American manufacturers and protect jobs.
* The UK government has argued it has a relatively equal trading relationship with the US, compared to other partners, but may need to retaliate with its own tariffs if necessary.
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