UEA expert: 'very little' UK can do to mitigate any increase in US trade tariffs
Donald Trump's warned that higher import taxes on the UK 'can't be ruled out'
A politics expert from a university in Norfolk is warning that there's 'very little' the UK Government could do to mitigate the effects of any trade tariffs that could be put in place by President Trump.
The American President's warned that higher import taxes on the UK 'can't be ruled out'.
It's as a 10 per cent tax on Chinese goods entering America has taken effect this morning.
He's also suggested that a similar levy could be in store for countries in the European Union.
"He's a politician that needs to show his supporters that he's keeping his promises"
Professor Alan Finlayson is from the University of East Anglia:
"He's partly using this policy for economic reasons, to push countries to adopt policies that he likes and to flex America's muscles on the world stage.
"After all, he's a politician that needs to show his supporters that he's keeping his promises and prepared to act tough.
"When we think about imports, we might think of items like cars and computers. But actually very often, what's at stake is the bits that go into things like this.
"The components that move across different borders, so things you didn't even realise or know were American, might have a bit of a US product in there and therefore the price of it increases."
What's the UK Government said on this?
The UK will seek a "strong trading relationship" with the US, Sir Keir Starmer has said.
Sir Keir was asked about the tariffs as he welcomed German Chancellor Olaf Scholz to Chequers, the Prime Minister's country estate.
"It is early days. What I want to see is strong trading relations," he told reporters.
The Prime Minister added: "In the discussions that I have had with President Trump, that is what we have centred on, a strong trading relationship.
"So it is very early days."
Home Secretary Yvette Cooper had earlier warned that Mr Trump's actions risk having a "really damaging impact" on the global economy.
Asked about Mr Trump's announcement, she told the BBC's Sunday with Laura Kuenssberg: "Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don't think it's what anybody wants to see."
The US tariffs are aimed at forcing its two nearest neighbours into doing more to prevent illegal migration into America, as well as the flow of the drug fentanyl.
Critics of the trade penalties have warned they could also fuel inflation in the US economy, driving up prices.
Ms Cooper also told the BBC that the UK's focus was "on building trade links and better trading relationships, and removing barriers to trade, with the US and also with other European countries and with countries right across the world".
"We want to reduce the barriers to trade, make it easier for businesses," she added.
The Government's opponents have called for differing approaches to the potential threat that tariffs could also be placed on UK goods.
While the Liberal Democrats have called for the UK to agree a customs union with the EU, Conservative shadow business secretary Andrew Griffith said Sir Keir Starmer should pursue closer trade ties with the US.
The Prime Minister should "be rediverting his plane" from Belgium, where he will meet EU leaders on Monday, to Washington DC, the senior Tory said.
Ministers have previously said they do not believe the US will impose tariffs on the UK, as it does not have a trade deficit with Britain.
Sir Keir has, meanwhile, said the UK does not need to make a choice between closer ties with Europe or with the US.