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Government officials taking advice on economic scenarios under Trump presidency

There are fears about the possible impact on the UK economy should the president-elect introduce tariffs.

Caitlin Doherty
Saturday 09 November 2024 23:12 GMT
Donald Trump and his wife, Melania, arrive on Air Force One at Prestwick airport in Ayrshire during his first spell in office (Andrew Milligan/PA)
Donald Trump and his wife, Melania, arrive on Air Force One at Prestwick airport in Ayrshire during his first spell in office (Andrew Milligan/PA) (PA Archive)

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Government officials are taking advice on the possible impacts on the UK economy if Donald Trump imposes tariffs.

The president-elect has previously said that he would increase rates on goods imported into the US from around the world by 10%, rising to 60% on those which come from China.

Officials at the Department for Business and Trade have commissioned advice and forecasts on a number of economic scenarios that could result from the second Trump presidency.

A Government source said: ā€œAs anyone would expect, we monitored the US election campaign closely and made sure we were well prepared for any outcome.

ā€œWe will continue to monitor developments, take advice and build relationships with counterparts to ensure we are placing Britain in the best possible position.

ā€œWe look forward to working closely with President Trumpā€™s team to strengthen UK-US trading relations to support businesses on both sides of the Atlantic.ā€

Meanwhile, former UK ambassador to the US, Lord Kim Darroch has said that he expects Mr Trump would carry out his ā€œthreatā€ of tariffs.

Writing in The Observer newspaper on Sunday, Lord Darroch said: ā€œI think Trump will impose tariffs on all US imports immediately and say ā€˜If you want them lifted, offer me something to rebalance tradeā€™.

ā€œThe EU will almost certainly retaliate; and the UK will face a difficult decision. Do we match EU retaliatory tariffs? Or do we seek a bilateral deal, like a free trade agreement?ā€

Kemi Badenoch, the leader of the Conservative Party has said that the return of Mr Trump to the White House is a ā€œgolden opportunityā€ for Britain to secure a trade deal with the US.

Writing in The Sunday Telegraph, she said that the Conservatives worked on a deal in 2020 that has was ā€œleft on a shelfā€ when Joe Biden entered office but is ā€œready to be dusted offā€.

There are fears about the impact tariffs could have to economies across the globe but, on Friday, New Jersey Democrat governor Phil Murphy said that he thought there could be a ā€œlaneā€ for the UK when it comes to trade with the US.

Speaking to journalists, he offered an optimistic assessment of what a Trump presidency could mean for British exports.

ā€œIā€™m sure you are concerned about tariffs, the bilateral relationship,ā€ he said.

ā€œIf I had to speculate I would say thereā€™s a lane for the UK.

ā€œThereā€™s less of a lane for the EU and Nato.

ā€œThereā€™s a lane for the UK to be determined.ā€

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