Friday, January 17, 2025
A looming trade war?
The paper says that Reynolds admitted that Trump’s presidency will be a “challenging time for anyone responsible for trade”, amid fears of a global trade war:
In the run-up to his election, the Republican promised to implement 10 to 20 per cent tariffs on all goods coming into the country – a figure that rises to 60 per cent for those from China.
Asked about his incoming presidency, Mr Reynolds told Sky News: “I think it’s going to be a challenging time for anyone who is responsible for trade in a big economy because of some of those pledges that were made in the campaign.”
But he added that there are also “opportunities for the UK”, insisting there are lots of things he would “like to see the UK doing more closely with the US in areas like
“If there’s an offer from the US to talk about how we can collaborate closer together on that, of course we would take a look”, the business secretary said.
Asked if he is worried about the threat of tariffs, Mr Reynolds said: “I am, because the UK is a very globally orientated economy, so the danger to the UK is actually greater than some comparable countries.
“So a lot of our work has been preparing for that, engaging early with the new administration.”
He added that the UK is in a “different position” to the EU and China, as the US doesn’t have such large trade deficits with Britain. But, he added, “we can’t be complacent, and we’re very well prepared”.
Elsewhere in the Independent, Ed Davey has urged Sir Keir Starmer to negotiate a UK-EU customs union to “turbocharge the economy” and strengthen the UK’s hand against possible tariffs from president-elect Donald Trump.
Giving a speech in London on Thursday, the Liberal Democrat leader will say such a deal would help the UK to negotiate with Mr Trump “from a position of strength”.
He will also criticise Conservative leader Kemi Badenoch for wanting to go “cap in hand” to the new US president and “beg for whatever trade deal he’ll give us”, as well as taking a swipe at Reform UK leader Nigel Farage for “fawning over Trump and licking his boots”.
Mr Farage is “more interested in advancing Trump’s agenda over here than the UK’s interests over there”, Sir Ed is expected to tell an audience in London in his first major speech of the year.
Ed Davey is right of course. The UK is not strong enough to stand alone against a protectionist USA. Only the EU has that sort of clout.
