Bloomberg UK Politics Turning off the Charm? Starmer Promises 'New Era' After Trump Tariffs
Apr 4, 2025
Lucy White, Bloomberg's politics and economics reporter, shares her insights on the UK's trade challenges following Trump's 10% tariff on British goods. The discussion unveils Keir Starmer's vision for a 'new era' in trade, emphasizing the UK’s need to adapt its negotiation strategies. Lucy explores the intricate diplomatic landscape, including potential offerings like a digital sales tax, and highlights the historical context impacting UK-US relations. The balancing act between U.S. priorities and European alliances takes center stage in this thought-provoking conversation.
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UK's Mixed Tariff Position
- The UK is subject to a 10% tariff by the US, which is half the 20% tariff imposed on the EU but the same as countries with weaker diplomatic ties like Iran.
- This puts into question the UK's "special relationship" status with the US compared to the EU and other countries.
Focus of UK-US Trade Talks
- The UK-US deal focuses on digital trade and technology but is not a full free trade agreement.
- Key UK issues include digital sales tax flexibility and maintaining food standards, especially on US meat imports.
Challenges in US Tariff Negotiations
- The UK needs a comprehensive trade deal with the US to materially reduce tariffs and boost economic growth.
- There is internal US disagreement over whether tariffs will stay at 10% for all or can be negotiated lower.