Britain avoids the worst Trump tariff, but the risks remain for Starmer

Sir Kerr Starmer will collect senior ministers on Thursday to survey the global commercial chaos that he called “Liberation Day” called Donald Trump, while the sigh of relief that Britain was worse.

Starmer’s allies argued that the “quiet” prime minister diplomacy with Trump had “distinguished” was “distinguished” with the fact that Trump imposed a 10 percent tariff on the United Kingdom, compared to 20 percent on the European Union.

The Trump rate in the United Kingdom, which has a balanced trade in goods with the United States, was the minimum imposed on trade partners in America. The likes of Australia, Brazil, Turkey and Singapore also obtained the lowest rate.

Starmer hopes to make a business deal with Trump to increase the average of 10 percent. But British officials realize that Trump has been put in training strong economic and political forces that may be difficult to contain. One of them said: “We are waiting for the administration to return to the ground.”

Joao Val de Almeida, the former European Union ambassador to the United Kingdom, said that one of Trump’s goals was to plant a section between Britain and the rest of Europe and warned of the danger that he could succeed.

“The more Britain’s privileges, the more it is difficult for the European Union to live with it,” he told the Financial Times. “The more you go to the American side, the more the distance you create with us.”

Starmer said that it will not impose a “ride” retaliatory tariff on the United States, although the likes of Canada and the European Union have responded to the type of previous rounds of Trump’s tariff. Trump’s liberal democrats want to form a “unified front” with Ottawa and Brussels.

Vale de Almeida said he was confident that Trump will eventually lead Britain to cut the best deal on the customs tariff from the European Union, which he said could create tensions if it causes trade and investment.

One of the potential tension areas – and a possible economic increase in the United Kingdom – would be if companies moved to the United Kingdom to benefit from the best trading conditions with the United States, said Sam Loui, a commercial political bullet at Consultance Flint Global.

However, he warned that Trump’s uncertainty reduced the possibilities of these transportation operations. “If there is a useful differentiation for the United Kingdom, the question that investors will ask is,” How long will it continue? “.

Louis added that the rules that require the production of goods in the United Kingdom enough to benefit from the low -US tariff, in theory, should prevent the European Union exporters simply ship their ready -made goods to the United States through the United Kingdom.

It is possible that any benefits to London will exceed companies that transport production through success to 60 billion pounds from the current UK’s exports to us, and the economic wound on the growth of GDP in the United Kingdom already from a global trade war-Starmer financial plans have a wrong margin of exit.

Trade experts do not expect Britain-unlike the European Union-will impose a “anti-dumping” tariff on surplus products that can immerse the global markets from China, Europe and other major industrial areas as a result of converting the American tariff from the American market.

“Will we take control measures? I doubt that we will do,” said Greg Hands, the former conservative Minister of Trade. Britain’s economy depends on the production of local goods less than spending and consumer services.

But his hands said that Starmer could face other problems arising from the Trump tariff, which could make his efforts to “reset” relations with Brussels before the UK/European Union summit in May.

He said he could imagine a position in which American goods were cheaper in Britain compared to the European Union due to the counter -measures imposed by Brussels on Trump. European consumers may go to London to buy American -made goods. Irish consumers may make a similar trip to Belfast.

“This may be good for the United Kingdom, but it may lead to tensions,” he said, adding that the French authorities may feel that they have to establish more customs checks for travelers returning from Britain.

“You can see how a specific Gali narration can arise around” Albion Gendi “cut his own deals with Trump.

Starmer will begin to feel political heat if his response to Trump’s tariff-not in particular his refusal to impose reprisals-in making new quick concessions from the American president.

Commercial experts said that the UK government’s decision not to announce revenge on the Trump tariff made the United Kingdom unwanted. China, the European Union and Canada have responded to Trump’s tariff so far.

Kreion Bater, head of the global economy at the Chatham House Center for Thinking, said that although the UK has a difficult balance in the strike as a small country that depends on the United States for its security, it risked Starmer’s retaining the demands of more privileges from Washington.

He said: “A number of countries – the European Union, China, Canada – announced revenge, but it delayed the assumption. Therefore, there is a way to do so and not to impose measures. “.

Bater added that the UK offer to reduce the digital services tax imposed on American technology giants constitute political risks to the Starmer administration, which simultaneously imposes luxury discounts on patients and disabled people.

Michael Jassiric, director of the UK’s commercial policy observatory at the University of Sussex, said any decision of Starmer for revenge should be a budget against any economic impact of the definitions imposed by the UK and that are likely to be negative – and it is likely to have a small impact.

He said: “The United Kingdom does not have a major economic crane when it comes to trading in goods with the United States, so I find that it is unlikely that revenge in the UK changes the position of the United States financially,” he said.

The “nuclear option” of threatening revenge in financial services, where the UK has a surplus with the United States, and thus can have an impact, which may also risk painful progress in mind that 27 percent of service exports in the UK go to the United States.

“Given the fluctuations and keys in the US policy, it seems to me now to” keep calm “and know whether a deal can be negotiated.”