UK ready for trade war as Donald Trump set to unleash tariffs
US President Donald Trump and Prime Minister Sir Keir Starmer agreed to consider a deal at the White House (Carl Court/PA) (PA Wire)
UK Prime Minister Keir Starmer is preparing for retaliatory measures against potential US tariffs, following President Trump's announcement of a 25% tariff on imported vehicles.
Initial optimism about the UK avoiding these tariffs has faded, and a UK/US trade deal before April 2nd seems unlikely.
The UK is offering to abandon its digital services tax, a move aimed at appeasing the US and potentially securing a trade deal that avoids tariffs.
Despite ongoing negotiations, the UK government is preparing for all scenarios, including direct tariffs and the indirect impact of trade barriers imposed on other nations.
The Bank of England has warned about the threat these tariffs pose to the UK's economic growth.