The British economy – still reeling from the effects of Brexit – could face a double whammy if Donald Trump imposes trade tariffs of between 10 and 20 per cent on all US imports.
A leading think tank has cautioned that the impact of Trump’s plans would hit UK firms as hard as the trade barriers that came into place after Brexit, which have had a devastating effect on the economy.
In a bombshell report, The Resolution Foundation said the UK will be hit directly by the tariffs, but also by knock-on effects resulting from ‘super-tariffs’ on countries such as China.
The thinktank called on Starmer to build closer ties with the EU, saying that “should remain a priority”.
“No longer part of a large trading bloc, the UK would then face sharp dilemmas in a scramble to retain access to overseas markets and its flow of imports,” the report said.
Speaking to The Independent, former member of the European parliament Molly Scott Cato said that Britain had already engaged in the “economic self-harm” of Brexit, adding that “now we face an impact on a similar scale from Trump’s tariffs”.
The economist and vice chair of the European Movement UK added: “This report is a timely reminder that we need to end the silence around the costs of Brexit and start a conversation about how to reverse the damage as well as defending our businesses against Trump’s trade war.
“Reducing trade frictions is a useful start, but it is clear that our best protection would be taking our place as part of the powerful EU trading bloc and joining the customs union.”
