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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)
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.
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