
After all this – a meeting of Chummy oval office, an extraordinary royal call, Paeans in a “special relationship” – Britain and its attractive prime minister, Keir StarmerThey were still tucked into the Tariff of President Trump, along with the European Unic and other main American trade partners.
Mr Trump imposed his basic tariff of 10 percent to Britain, while hit by the European Union with 20 percent. This attracted the sighs of the assistant Mr. Starmer, who said that the difference would protect thousands of British jobs. They asked for revenge for Mr. Starmer’s charm towards the US president; Others said it was a dividend of Britain’s decision to leave the European Union in 2016.
Still, in the second sense, it was a pyroic victory: Britain was subjected to the same tariff from blankets as dozens of countries, although the United States with Britain is managed by trade surplus, according to US statistics.
Britain is obviously hoping to conclude a kind of trade agreement with Mr. Trump along the way, which could spare him a lasting tariff effect. On Thursday, Mr. Starmer told business managers that the British would react with “cool and calm heads”.
The question is whether it will adhere to its strategies – resist the pressure to impose the retaliation of the tariff, for example – or to align with other countries, such as Canada, hitting against the United States. Downing Street said he would not impose the measures of Tit-Za-Tat while trade conversations are underway.
“His strategy has been completely understandable so far,” said Jonathan Portes, a professor of economics and public policies at King’s College London. “If I were him, I would have done the same. Now he should avoid the conflict because of that, but there is no point in alleviating.”
Professor Portes said that the target retail moves could make sense as a negotiating tactic. But Tariff on the entire panel on American goods, he said, he would only deepen the damage to the British economy, which she scattered even before Mr Trump announced his measures on Wednesday.
Britain has negotiating chips available, including a reduction Existing digital services tax of 2 percent. Professor Portes said that Britain could play a hard ball in other ways – for example, acting against X, a platform of social media owned by Elon Musk, an ally of Mr. Trump. The critics have accused the platform for stimulating hate speech, while Mr. Musk used X of campaign against Mr. Starmer’s Government.
If Mr. Starmer fails to draw nothing more than Mr. Trump after all his efforts, it would be politically embarrassed. But analysts said the greater threat to the British slow growing economy. The Budget Responsibility Office, an independent fiscal guard, said that a 20 percent tariff tariff could reduce the British economy by 1 percent next year. He predicted a growth of 1.9 percent.
British finances are already under extreme pressure. Cancer of the cash register, Rachel Reeves, Increased employers’ tax and plans a large reduction in well -being Cover consumption on exhausted services and fulfill its promise to balance the budget and reduce debt level.
Britain, with its small, open economy, is deeply sensitive to the effects of a trade war. British officials, led by Ambassador to Washington, Peter Mandelson, have vigorously negotiated with a white house to prevent these tariffs. They did not avenge the previous tariffs on steel and aluminum, or on vehicles, which entered into force on Thursday.
Jonathan Reynolds, Minister of Business and Trade that was involved in conversations, said it was “pragmatism”. On Tuesday, the BBC said that Britain was in the “best possible position of any country” to reverse the tariffs.
Britain has either a $ 89 billion trade or a $ 14.5 billion deficit with the United States, depending on whether British or US statistics are cited. (The difference is partly resting in the way two sides treat offshore financial centers such as Jersey and Guernsey, which are the addiction of crown.) The goods trade, with which Mr. Trump is the most fixed, is relatively in balance.
Among the British exporters facing a reversal is a luxury auto industry, as car manufacturers such as Jaguar, Bentley, Rolls-Royce and Aston Martin do not have prefabricated plants in the United States. More than 40,000 British companies exported goods to the United States in 2023, according to customs data.
Mr. Starmer is facing a sensitive budget in deciding how to respond to Mr. Trump. Considering the president’s unpopularity in Britain, analysts said that Mr. Starmer and his Labor Party could take advantage of the brief benefits of revenge.
“Standing towards Trump could suit what he tried to do, which is the Labor Patriotic Party,” said Steven Fielding, a professor of political history of emeritus at the University of Nottingham.
This would also distance the UK reform, an antimigrant party whose leader Nigel Farage had close ties with Mr. Trump. And that would allow Mr. Starmer to approach the European Union, which is expected to impose his own countermeasures.
Suitable to Mr. Trump “could be a short -term political gain,” Professor Fielding said, but for Mr. Starmer in the long run, “any tariff war could hurt the economy, which will harm his prospects for a re -choice.”