ASSESSMENTS

Trump's Tariff Threats Will Complicate the U.K.'s Trade Balancing Act

Feb 19, 2025 | 18:53 GMT

The U.K. flag is flown near the U.S. Capitol in Washington, D.C., to honor the passing of Queen Elizabeth II, on Sept. 9, 2022.
The U.K. flag is flown near the U.S. Capitol in Washington, D.C., to honor the passing of Queen Elizabeth II, on Sept. 9, 2022.

(Drew Angerer/Getty Images)

While the United Kingdom will likely avoid major U.S. tariffs, concessions to Trump could further complicate the ruling Labour Party's efforts to restore trade ties with the European Union and expand economic engagement with China. The U.K. government remains confident that it can avoid a trade war with the United States, with high-ranking officials, including Prime Minister Keir Starmer, recently saying that good relations between London and Washington will prevent an escalation of trade disputes. On Feb. 11, the U.K. government said that London would not retaliate immediately to the White House's Feb. 10 decision to implement tariffs on steel and aluminum imports from around the world, including the United Kingdom. And while U.S. President Donald Trump has already imposed or threatened tariffs against several U.S. key trading partners, he hinted at a possible exception for the United Kingdom, emphasizing his positive relationship with Starmer....

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