Just when you thought the British economy had suffered enough, Donald Trump’s proposed “super-tariffs” on imports might bring another hefty blow to UK businesses. A leading think tank, The Resolution Foundation, has warned that these tariffs, ranging from 10% to 20%, could leave UK trade battered—on par with the damage wrought by Brexit.
Brexit déjà vu?
The UK economy is already grappling with the fallout of Brexit, which severed frictionless trade with the EU. Now, Trump’s potential tariffs on imports to the US could double the trouble. The Resolution Foundation’s report highlights that the UK would face direct losses from these tariffs, as well as secondary effects from levies on major trading partners like China.
The report paints a grim picture: with no EU safety net, the UK could be left scrambling to maintain access to international markets while also dealing with higher costs for imports. It’s the economic equivalent of being caught between a rock and a Trump-shaped hard place.
A call for closer EU ties
The think tank’s advice? Get cosy with the EU again. “Rebuilding ties with the EU should remain a priority,” the report suggests, underlining the vulnerability of the UK as a standalone trading nation.
Molly Scott Cato, economist and vice-chair of the European Movement UK, didn’t hold back in her assessment. “Brexit was economic self-harm, and now we’re staring down the barrel of Trump’s trade war,” she told The Independent.
She added, “This report is a timely reminder that we need to end the silence around Brexit’s costs and start talking about how to reverse the damage. Joining the EU customs union would be a step in the right direction.”
A trade war on the horizon
If Trump’s tariffs go into effect, British firms will face a tough road ahead. The “America First” policy may be great for US headlines, but for UK businesses already reeling from lost EU markets, it’s yet another hurdle to overcome.
While Starmer has kept Brexit talk relatively muted, calls are growing louder for a strategy to shield the UK economy from further isolation. Whether that involves re-engaging with the EU or finding new trading allies remains to be seen.
For now, one thing’s clear: with Brexit and Trump’s tariffs looming large, UK trade is in for a turbulent ride—and no one’s handing out seatbelts.
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