Donald Trump’s dramatic move to impose sweeping new tariffs has triggered a flurry of international interest, with US officials claiming that more than 50 countries have reached out to begin trade negotiations. However, the move has also sparked fears of a global trade war, with markets tumbling and major economies preparing retaliatory measures.
According to US Treasury Secretary Scott Bessent, the introduction of tariffs has “repositioned America in the global trade order,” placing President Trump in what officials describe as “a position of power.” Yet despite the bullish rhetoric from Washington, the economic fallout has been swift and severe, with nearly $6 trillion wiped off the value of US stocks in a matter of days.
China was the first to respond with countermeasures, imposing retaliatory tariffs on a range of American imports. Now, European Union leaders are signalling that the world’s largest trading bloc could soon follow suit, raising the risk of escalating protectionist policies on a global scale.
Bessent declined to name the countries that had expressed interest in new trade agreements, nor did other US officials appear willing to offer specifics during a string of Sunday morning television appearances. The lack of detail has fuelled scepticism among analysts, who question the Trump administration’s capacity to engage in simultaneous negotiations with dozens of partners.
Back in Britain, Prime Minister Sir Keir Starmer has sought to reassure British businesses and consumers, pledging that his Government “will do everything necessary” to shield the UK economy from any fallout. Speaking at a press briefing, Starmer said: “In the face of rising global uncertainty and the risk of retaliatory trade measures, we are ready to use industrial policy where needed to support British industries.”
He added that the UK would not be passive in the face of global disruption: “We will turbocharge plans that will improve our domestic competitiveness and protect our national interest.”
The Prime Minister’s remarks mark a clear pivot towards a more interventionist approach to economic policy, with ministers reportedly drawing up contingency plans to mitigate potential supply chain disruption and provide targeted support for affected sectors.
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Business leaders have cautiously welcomed the Prime Minister’s stance. The Confederation of British Industry (CBI) noted that “clear and decisive Government action” will be key in maintaining market confidence. However, there remains widespread concern among exporters, particularly those reliant on transatlantic supply chains.
Meanwhile, Downing Street is said to be monitoring developments in Brussels and Washington closely, wary of a repeat of the 2018 tariff standoff which damaged automotive and steel exports. A senior Whitehall source confirmed that the Department for Business and Trade has already begun assessing possible vulnerabilities within key industries.
Though Trump officials remain upbeat about America’s negotiating leverage, critics argue that the new tariffs risk alienating allies and undermining long-standing trade relationships. The International Monetary Fund has warned that widespread trade restrictions could depress global economic growth, just as markets were beginning to recover from a prolonged downturn.
As the global economic order appears to shift once again, the UK finds itself walking a fine line—balancing its own trade ambitions with the need to remain resilient in an increasingly protectionist world. For now, Sir Keir Starmer’s message is clear: Britain will act decisively to defend its economic future.
