Lib Dems Push for Impact Assessment on Potential Trump Tariffs Facing UK Economy

The Liberal Democrats are urging the UK government to publish an analysis regarding the potential economic impact of Donald Trump’s proposed trade tariffs, which could reach up to 20% on global imports and as high as 60% on Chinese goods. With Trump set to be inaugurated as US president, the Business and Trade Secretary Jonathan Reynolds has expressed concerns that a second wave of tariffs could lead to increased inflation and unemployment in the UK.

In response, the Lib Dems intend to use a rarely invoked parliamentary procedure known as a “humble address” to compel the government to disclose its internal assessments. This comes amidst warnings from recent studies that suggest a 20% tariff on UK exports to the US could result in a staggering £22 billion loss to the British economy annually. Lib Dem leader Sir Ed Davey emphasized the importance of transparency for the public, particularly those already strained by the cost of living crisis, stating that they deserve to understand how Trump’s tariffs may affect their financial well-being.

Furthermore, Sir Ed is advocating for the establishment of a new UK-EU customs union to strengthen the UK’s negotiating power with the incoming Trump administration while promoting economic growth. As tensions between the US and EU regarding trade grow, Trump’s outspoken threats to impose tariffs unless the EU buys US oil and gas exacerbate the situation. Prime Minister Sir Keir Starmer faces the challenging task of balancing the UK’s relations with both the US and EU following Brexit, rejecting the notion that the UK must choose sides.