Trump tariffs a ‘lose-lose’ situation for everyone – Chamber

Greater Birmingham business leaders today urged the Government to do all it can to secure the best deal for Britain and support businesses impacted by Donald Trump’s ‘Liberation Day’ tariffs.

President Trump announced a sweeping new set of tariffs yesterday, arguing that they will allow the US to flourish economically.

The UK is among a group of countries to have been imposed with a “baseline” 10 per cent on goods imported to the US.

Key trading partners including the European Union (20 per cent) and China (54 per cent) were hit with their own custom tariffs.

Prime Minister Keir Starmer responded to the tariffs by vowing to “fight for the best deal for Britain” in negotiations.

“Nobody wins in a trade war, that is not in our national interest,” he said.

Emily Stubbs, head of policy at Greater Birmingham Chambers of Commerce, said: “This is a ‘lose-lose’ situation for everyone and we urge the government to do all it can to provide practical support to UK businesses making difficult decisions today about trade with the US.

“We also encourage Greater Birmingham firms to immediately start negotiations with their US customers on managing the impact of these tariffs, if their contacts allow.

“Longer term, they may want to explore alternative markets, especially the EU, CPTPP countries or those where we're expecting other trade deals to be made later this year.

“The Bank of England cited intensified uncertainty in global trade as one of the reasons to hold off on lowering interest rates last month. They'll be carefully monitoring the impact of these tariffs, particularly on inflation and employment, as they consider future rate cuts.

“A global trade war would likely give a significant knock to UK GDP and that have repercussions for the Chancellor's fiscal headroom - if that gets wiped out then we would be looking at either more spending cuts or more tax rises.

“The UK government must remain level-headed and continue to work with the US administration to find a mutually beneficial agreement on tariffs and trade that provides certainty for both businesses and consumers on the future landscape for international trade.”

Janie Frampton, president of the Greater Birmingham Global Chamber of Commerce, said: “The 10 per cent tariff on goods imported from the UK into the United States is unhelpful but is significantly lower than has been imposed on many other major US trading partners, including the EU.

“However, there is no escaping the fallout from these decisions, which will increase the risk of trade diversion and cause great uncertainty for business communities across the world.

“The Government has kept a cool head during negotiations so far - and getting the best deal for the UK is what matters most. 

“It is vitally important that the Government does not give up on negotiations and, in the meantime, provides the necessary support to impacted businesses.

“Tariffs can be lifted at any time and the US has left the door open to do some form of deal with us. 

“The Global Chamber will continue to monitor the situation and our hope is that an agreement can be reached soon.”