“We are vulnerable at this point,” says Fiona Connor, managing director of Trust Electric Heating, a Leeds-based radiator manufacturer that is considering expanding into the US market.
After the unpredictable start to Donald Trump's second term as US president, Connor worries that her options will be limited as British companies support the world trade war .
Business leaders hope that the UK can avoid wiping out US tariffs, but experts say that fragmentation of international trading orders is a relatively small and open economy like the UK It warns that it will still have a calm effect. Emphasizing that risk, Trump's 25% tariffs on steel and aluminum, announced this week, could hit British industry hard when it comes into force in early March, including UK exporters. .
As the owner of a fast-growing business, Connor has been traveling between Leeds and New York for the past few months, building links to the world's largest economy and selling award-winning electric radiators for the family economy. It's there.
“Now with this tariff threat, I hope Kiel Starmer wears his big boys pants and has some strong negotiation skills. When I get there, I'm looking at the white [Trump’s] I'll wave my eyes, my hands and get this deal done,” she says.
The US is the UK's largest individual country trading partner in relations It is worth around 300 million pounds a year. Most offer services that involve banks, law firms and accountants primarily in the City of London and Wall Street. Foreign direct investment between the two countries totals more than £1.
The exports of British goods – dominated by automobiles, pharmaceuticals and drugs, mechanical generators and scientific equipment – were worth £58 billion a year by the end of the year. and generators.
As Trump targets allies and enemies as well as tariffs, priority governments are looking for something comfortable with the president, restructuring relations with the EU after Brexit. The Prime Minister is scheduled to visit Trump later this month, but the UK minister this week agreed to the White House by joining the US by refusing to sign an artificial intelligence agreement at the Landmark Paris Summit.
Often, the softer tones of voice than other world leaders, some economists use UK post-Brexit independence to negotiate trade with the US, EU and China, and therefore prioritized independence I think there is a possibility that you will use it. However, others have warned that the UK is in a weak position outside the EU, and ultimately they will have to choose the side.
Former government trade advisor Rhys Davies told Flint Global, now consulting firm: It's limited.
“The UK is trying to prepare carefully coordinated measures to make the most of its political influence and strengthen broader trade ties, but Trump has a consistent trade deficit in the US. It's about flying under the radar while you're looking at the country.”
Trump has attracted most attention in Canada, Mexico and China, and they export to the US more significantly than they import. The UK has a more balanced business relationship with the US.
Starme can also rely on statistical habits. US figures show that there is a surplus of trade in goods with the UK about $12 billion (£9.6 billion), while the UK reports a surplus with the US about £2 billion. National Statistics Bureau Unlike the UK, it condemns some discrepancies with the definition of territory, along with US data, including crown dependencies.
However, business leaders are still concerned about the risk of a distinctive, intense shift from the US president. According to a survey by the UK Chamber of Commerce, 63% of manufacturers believe their exports will be affected by US tariffs.
Another company that found themselves straight in the fire line is Europlaz Technologies, an Essex-based manufacturer of high-precision products in the medical device industry. The US market is the largest destination for exports of British scientific instruments worth around £3 billion in 2023.
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Rory O'Keeffe, commercial director for Europlaz Technologies, says Trump's “Sledgehammer” approach could lead to a “commercial earthquake” for his company.
“Three of our biggest customers exist in the US, and many of our UK-based clients rely on the US market for most of their sales. The reality is that tariffs are expensive. , high costs means higher prices and lower competitiveness,” he says.
Liberal Democratic leader Ed Davy prioritized the imposition of “Tesla tariffs” on Wednesday if Trump pushes for plans to be stricken by the UK steel industry.
“Sitting and hoping Trump won't hurt us won't work. The only way we can tackle Trump is. [Elon] The mask is about negotiating from the status of strength and showing that the UK will not be bullied from across the pond,” he said.
Even if the UK is eschewing certain tariffs, experts warn that a wider slowdown in international trade will hurt the UK. Global supply chains are hit by US tariffs in other countries, such as shipping components to the EU, which are used to be exported to the US market, such as manufacturers that ship components to Mexico and the EU. It means there is a possibility.
“It's not an effective tariff per se, but a slower in other regions that could have a more attenuating effect in the UK,” said Anthony O'Brien, Phoenix Group's Head of Market Strategy.
It's also important how the UK will respond. Free market economists have prioritized not retaliating if Trump targets the UK, claiming that while British exporters will be attacked, UK consumers will avoid raising prices for US goods There is.
Still, such outcomes will be hit by the UK economy. The Bank of England, which closely monitors the situation, warns that anything that plagues global trade is bad for growth. Corporate investments can be put on ice, but US tariffs, including China, the world's largest exporter, could be flooded with markets, leading to the shift in products to the UK.
Jonglen, the chief economist at the chartered procurement and supply research laboratory, says the UK is in a tight spot. “We have the opportunity [post-Brexit] Become independent and negotiate an agreement with Trump. Will he be happy to do that? I don't know. Are we in a strong position to negotiate? i don't think so. Can I act as a mediator between the EU and the US?
