A potential trade war between the US and other countries may not be as severe as anticipated, according to a former political appointee in the previous Trump administration. The ex-appointee, Peggy Grande, mentioned that the President-elect is more likely to focus on imposing tariffs and trade restrictions on the European Union rather than the UK. This is because he is keen on supporting a successful Brexit and may offer a preferential trade deal to the UK.
Grande, who also worked with Ronald Reagan, emphasized Trump’s interest in the special relationship with the UK. She suggested that any tariffs imposed would have a greater impact on the EU than on the UK. Additionally, she highlighted Trump’s commitment to strengthening ties with the UK through trade agreements, especially in light of the ongoing trade tensions with China.
While Grande is optimistic about the US-UK trade relations, former British ambassador to the US, Kim Darroch, expressed concerns about the potential impact of tariffs on the UK economy. Darroch anticipates that Trump may follow through on his tariff threats, putting pressure on Chancellor Rachel Reeves to navigate this challenging situation. Reeves is expected to promote free and open trade in her upcoming speech, emphasizing the importance of global business connections for the UK’s economic growth.
Darroch warned that the UK might face a tough decision between siding with the EU or risking its agriculture sector in trade negotiations with the US. He suggested that Trump could offer a free trade agreement to the UK but with demands for access to the UK market for US agricultural products like hormone-treated beef and chlorine-washed chicken.
Despite concerns about potential tariffs, there is some optimism that Trump may not pursue such measures against allies like the UK. Governor Phil Murphy of New Jersey expressed doubts about Trump’s intentions and suggested that the UK-US trading relationship should be supported. Treasury Minister Darren Jones also reiterated the UK government’s stance on free trade and its commitment to strengthening UK-US trading relations.
Overall, while the possibility of a trade war looms, there are efforts being made to navigate these challenges and ensure that the UK remains in a favorable position in its trade relations with the US. It remains to be seen how the situation will unfold and what decisions will be made to safeguard the UK’s economic interests amidst global trade tensions.
