US President Donald Trump’s latest round of tariffs could have a “really damaging impact” on global trade and economic growth, Home Secretary Yvette Cooper has warned.
The President has imposed a 25% levy on goods from Mexico and Canada and a 10% trade tax on Chinese imports, with the measures set to take effect on Tuesday. The move has sparked fears of escalating trade wars, with major economies considering retaliatory action.
UK calls for trade barriers to be lowered
Speaking on Sunday with Laura Kuenssberg on the BBC, Ms Cooper became the first senior British Government figure to respond to the announcement. She stressed that the UK’s priority was reducing trade barriers rather than erecting new ones.
“Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see,” she said.
The Home Secretary’s comments reflect broader concerns within the UK Government, which has sought to forge stronger trade relationships with both the US and Europe.
“We want to reduce the barriers to trade, make it easier for businesses,” she added, highlighting Britain’s commitment to open markets.
Mexico and Canada vow retaliation
The new tariffs have provoked a strong reaction from Mexico and Canada, two of America’s largest trading partners. Both countries have vowed to introduce retaliatory tariffs on US goods, raising the prospect of a tit-for-tat trade war.
While President Trump has framed the measures as a way to pressure Mexico and Canada into curbing illegal migration and stopping the flow of the drug fentanyl, critics argue that they will fuel inflation and disrupt supply chains, causing harm to businesses and consumers alike.
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The political divide on trade strategy
The tariff dispute has exposed divisions in the UK over how best to respond to future trade challenges.
- The liberal democrats have called for the UK to negotiate a customs union with the European Union, arguing that closer ties with Europe would provide economic stability and protect British businesses from potential US tariffs.
- The conservatives, however, have urged Prime Minister Sir Keir Starmer to prioritise trade negotiations with the US. Shadow Business Secretary Andrew Griffith argued that Sir Keir should “redivert his plane” from Belgium—where he is due to meet EU leaders on Monday—to Washington DC to secure trade assurances from the White House.
Despite concerns, ministers have said they do not believe the US will impose tariffs on British goods, as America does not currently have a trade deficit with the UK.
Sir Keir: ‘UK does not need to choose between US and EU’
Amid growing pressure to clarify Britain’s trade stance, Sir Keir Starmer has insisted that the UK does not need to choose between closer economic ties with the US or the EU.
His government is expected to focus on strengthening Britain’s global trade network while maintaining a balanced approach between the European single market and key US partnerships.
However, with President Trump’s aggressive trade policies causing instability, Britain may soon have to navigate a more volatile global trade landscape—one that could force difficult choices in the months ahead.
