Britain avoids scary Trump tariffs but risks remain for Starmer

On Thursday, Sir Keir Starmer convenes the senior ministers to inspect the world trade chaos, unleashed by the so -called “Liberation” tariffs, Donald Trump, breathing with a sigh of relief that Britain was deprived of worse.

The Starmer Allies claimed that the Prime Minister’s “calm” diplomacy was “justified” by the fact that Trump introduced a 10 percent tariff on the UK compared to the EU’s 20 percent rate.

Trump’s bet put in the UK, which has a balanced trade in the US, was minimal, which he charged with trading partners in America. Similar Australia, Brazil, Turkey and Singapore also received the lowest rate.

Starmer hopes to conclude a trading contract with Trump to further reduce the 10 percent rate. But British officials admit that Trump has put on a train of powerful economic and political forces that could be difficult. “We are waiting for the administration to return to the ground,” one said.

Joao Vali de Almeida, a former EU ambassador to the UK, said one of Trump’s goals was to sow the division between Britain and the rest of Europe and warned of the dangers that he could succeed.

“The more concessions that Britain makes, the more difficult the EU lives with it,” he said The Financial Times. “The more you go to the American side, the greater the distance you create with us.”

Starmer said he would not bring tariffs to the United States, although the EU is similar to the previous round Trump tariffs. The Liberal Democrats against Trump want Starmer to create a “single front” with Ottawa and Brussels.

Val de Almeida said Trump would eventually cut Britain an even more profitable tariff deal than the EU, which, he said, could create tensions if it caused a deviation and investment.

Sam Low, leading trade policy in Consultancy Flint Global, said one of the possible tension – and a potential economic incentive for the UK – if companies moved to the UK to use the best conditions in the US.

However, he warned that the uncertainty created by Trump reduced the prospects of such crossings. “If there is a differential that is beneficial to the UK, which investors will ask,” How long is it going? “,” he said.

Low added that the rules that require goods that will be sufficiently made in the UK to use the US lower tariff, by theory, to prevent EU exporters, simply sending ready -made products to the US through the UK.

Any privileges in London from the relocation companies will probably be redeemed to the hit up to 60 billion pounds of existing exports to us, and the economic attraction to the already stagnant GDP in the UK from the World Trade War-Fiscal Plans Starmer have the profitability of the razor for a mistake.

Trade experts do not expect that Britain-in differences from the EU-supply “anti-dumping” tariffs for extra products that can flood the world markets from China, Europe and other large production areas as a result of the US market.

“Would we have taken measures to combat the dumping? Britain’s economy is less based on the production of domestic goods than consumer expenses and services.

But hands said that Starmer may face other problems that result from Trump tariffs, which could complicate his efforts to “reset” relationships with Brussels ahead of the UK summit in May.

He said he could imagine the situation in Britain was cheaper than the EU with a countermeter imposed by Trump Brussels. European consumers can head to London to buy goods made in the US. Irish consumers can make a similar journey to Belfast.

“It may be good for the UK, but it can lead to tension,” he said, adding that the French authorities may feel forced to create more customs checks for travelers returning from Britain.

“You could see how a certain Gallic story about” perfect albion “, which reduces your own business with Trump,” said Rurke.

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Trade experts said the decision of the UK government did not announce revenge on Trump tariffs by making the UK. China, the EU and Canada still responded to Trump’s tariffs.

Creon Butler, Head of the World Economy at the Chatem Analytical Center, stated that while the UK had a complex balance to strike as a small nation depending on its safety, Stack Starmer risked inviting the requirements for further concessions from Washington.

“A number of countries – the EU, China, Canada – announced revenge, but then delayed the introduction. So, there is a way to do it rather than impose measures. The question is, if you do not avenge,” where do the requirements stop? “,” he said.

Butler added that the UK proposal would dilute the digital services tax introduced by the US technological giants, also raised political risks for the Starmer administration, which simultaneously imposes well -being on sick and disabled.

Michael Gasarek, Director of the UK Trade Policy Observatory at the University of Sussex, said any Starmer decision to avenge, should be weighed against any economic effect of tariffs imposed in the UK, which will be negative – and probably has no effect.

“There is no significant economic impact in the UK when it comes to trade in goods from the United States, so it seems unlikely that the UK retribution is significantly changed,” he said.

The “nuclear version” of threatening revenge with financial services, when the UK has an excess with the United States, and therefore potentially influenced, also risked to lead to an excruciating counter-network, given that 27 percent of UK’s exports go to the United States.

“Given the whims and switching to politics in the US, I think it is reasonable to” remain calm “and find out if you can agree on the contract,” said Gasarek.