Britain is bracing for the impact of U.S. President Donald Trump’s anticipated global tariff plans this week, with the government preparing for various scenarios, according to a spokesperson for Prime Minister Keir Starmer on Monday.
Negotiations between Britain and the United States aimed at establishing a new economic agreement to prevent these tariffs are expected to extend beyond Wednesday, the day Trump is likely to announce the global tariffs, the spokesperson noted.
“We have been diligently preparing for all possible outcomes ahead of President Trump’s expected announcement this week, which we anticipate will affect the UK along with other nations,” the spokesperson informed reporters.
Trump is scheduled to reveal new reciprocal tariff rates on what he has termed “Liberation Day” on April 2, following the imposition of tariffs on aluminum, steel, and automobiles, as well as increased tariffs on all goods from China.
This initiative seeks to reduce a $1.2 trillion global goods trade deficit by elevating U.S. tariffs to match those imposed by other countries and addressing their non-tariff trade barriers.
Starmer had a “productive” phone conversation with Trump on Sunday as he attempts to mitigate the impact of the tariffs.
While British ministers have indicated that all options remain on the table in response to any tariffs, they have downplayed the chances of immediate retaliation against the United States, emphasizing that a trade war would be detrimental to global economic growth.
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The Office for Budget Responsibility (OBR) in the UK stated last week that increased U.S. import tariffs would negatively affect the UK’s economic activity and nearly eliminate the government’s fiscal buffer.
The OBR warned that U.S. tariffs on its trading partners could potentially shrink the size of Britain’s economy—highly sensitive to fluctuations in international trade—by as much as 1%.
