UK prime minister remains hopeful as Trump strikes trading partners with tariffs

Just weeks after returning to the White House, US president Donald Trump has already followed through with one of his most central, albeit arguably controversial, policies; enacting tariffs on US imports. From Tuesday, Canadian and Mexican imports will now have tariffs of 25 percent imposed on them, while Chinese goods will have a 10 percent tariff.

The White House said such measures were “necessary” to hold these regions “accountable for their promises to halt the flood of poisonous drugs into the US”. Canada, which Trump has repeatedly said “should become [the] 51st State”, has particularly become a target, with the president stating on social media platform Truth Social that the US pays “hundreds of billions of dollars” to subsidise the country.

Trump’s stance towards Chinese imports, meanwhile, is unexpectedly softer than what he initially expressed in his election campaign. During this period, Trump had warned of tariffs of up to 60 percent on goods descending from the region. In his first term as president, he imposed tariffs of 25 percent.

Canada, Mexico and China push back

All three countries have hit back over the incoming tariffs. Canada’s prime minister Justin Trudeau has outlined retaliatory tariffs of 25 percent on US goods, while Mexican president Claudia Sheinbaum also suggested both tariff and non-tariff measures “in defence of Mexico’s interests”. In addition, China is said to be filing a lawsuit with the World Trade Organisation for the US’ “wrongful practice".

The EU also appears to be in the firing line, yet Trump has only so far warned of potential tariffs for the region. Addressing the BBC, Trump said the EU was “really out of line” in regards to its trading relations with the US, and thus tariffs would “definitely happen”. In response, the European Commission spokesperson told the media outlet that the EU will “respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods”.

Meanwhile, for the UK, which left the EU in 2020, the future of its relationship with the US remains hazy. Speaking to reporters over the weekend, Trump said, akin to the EU, the UK was similarly “out of line”, yet noted a deal could “be worked out” as he got along well with prime minister Keir Starmer. “We’ve had a couple of meetings, we’ve had numerous phone calls, we’re getting along very well, and we’ll see whether or not we can balance out our budget with the EU,” Trump added.

Starmer seeks ‘strong trading relations’

Starmer also remains hopeful. Speaking to multiple media outlets, the prime minister said he wanted to see “strong trading relations” with the US, adding “it is very early days”. A spokesperson for the British government also told the press: “We have a fair balanced trading relationship which benefits both sides of the Atlantic.”

Trump’s plans for global tariffs have been met with mixed reactions from the local US industry. The National Retail Federation (NRF), for example, supported the president’s review of such measures, with a view of addressing trade deficits and unfair practices, but warned of the potential economic impact on the US, where it estimated that consumers could lose between 46 and 78 billion dollars in spending power annually if tariffs were imposed.

The fashion industry has also been wary of such implications. Upon Trump’s election, brands like Steve Madden suggested slashing the amount of goods it imports from regions like China. Its CEO, Edward Rosenfeld, told investors in November that, if tariffs were to come into play, he wanted to reduce the percentage of goods sourced from China from 70 percent to as low as 40 percent.