Economic and Employment Concerns
Trump's proposed tariffs, nicknamed "," are expected to affect the car industry severely, risking over 25,000 jobs in the sector due to a 25% levy on US car imports.
The tariffs could lead to a significant global economic downturn, with estimates projecting a £1 trillion loss. The UK's GDP may suffer more than previously anticipated, irrespective of a potential UK-US trade deal.
Political and Strategic Responses
UK leadership, including Prime Minister , is engaged in urgent trade talks with the US, seeking exemptions or a deal that avoids a trade war while preparing for possible retaliation.
The UK government is considering concessions, such as reducing the digital services tax on US tech companies, in hopes of securing a trade deal that mitigates the impact of tariffs.