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Precious treatment of Donald Trump’s British exports provides a competitive advantage to the firms of the country that, according to the economies, can save the economy from Washington’s trade war.
Trump put 10% duty on all imported UK goods, which is the lowest rate available, which is a part of his “liberation day” tariff on US trading partners, a step that crashes markets and threatens to increase the entire global trading system.
But experts stated that the UK is one of those people, as the lower tariffs give competitive advantage to their manufacturers and the government is in a good position to secure a deal with the US for further cuts.
David Wayne, Managing Director, Conmeca, an expert in the northwest of England, told BBC Radio on Thursday that “it will be quite worrisome for many industries, offering it an opportunity for itself” because Conmec’s products will now be cheaper than rivals abroad in the US.
“We should really be competitive in the US market for many years,” he said. Trump wants to build a domestic American industry, but it will take some time and the US will still need imports.
The government is interacting with the US about a targeted trade agreement to reduce 10% baseline rate with the US or bring 25% tariffs on UK Steel and bring cars down 10%. Options at the table include leaving the UK tariff on US agriculture, scripting digital service tax on American tech companies and agreeing new rules around technology.
Alan Winters, a business expert and Emeritus Professor at Sussex University, said the direct effect of tariffs on the UK would be smaller. “If someone is harder than to hit your rivals, you get a competitive advantage,” he said. “If we get a business agreement with America, we can also get benefits.”
Sussex’s Center of Inclusive Trade Policy on Friday estimated in a paper that a “slight loss to the UK” of 0.1% -0.3% from GDP. If the UK can make a deal with the US, the economy “will earn positive profit of 0.1%.” The US said that America will “suffer more than any other country” by its own measures.
The UK has “one of the best opportunities to come up with a deal” that can reduce tariffs on UK goods, which may be less due to his balanced business with the US and Prime Minister Kir Stemer’s concrete relationship with the President, the major mats person of macro strategy at EY Parthenon, said. “In short term, there is a lot of uncertainty, but you can see how pieces can eventually fall that makes Britain more competitive.”
‘Potentially beneficial’
UK’s 10% Levy makes it the world’s largest goods exporter for basic tariffs. In China, 34% of tariffs are faced and it retaliates. In the European Union countries, 20% and South East Asian exporters were badly killed. Mexico and Canada were excluded because there are separate arrangements.
Trump told reporters on Thursday that he believed “was very happy how we treated Tariff.”
Identifying immediate decline will cause harm, Raul Ruparel, director of the Center for Group of the Boston Consulting Group, said that the relative effect of preference duties is “potentially beneficial and may have some positivity to the UK, especially if other countries are retaliated and do not.”
Rupel said that the UK trading diversion in the UK that would have gone to the US may reduce prices and allow Bank of England to cut interest rates more rapidly. “Currently tariffs look more disruptive than inflation for the UK, it is helpful for the standard of living and borrowing,” he said. “This is not all bad for the UK economy.”
The markets responded to Trump’s tariff that it was predicted that BOE would cut rates three times this year, earlier only two were expected.
The International Monetary Fund has warned of a “significant risk” to the world economy and Bloomberg Economics estimated that the direct impact of tariffs on UK exports may knock up to 0.4% from GDP.
Person stated that “some UK was a possible reverse in the moderate period for businesses and the UK” but he warned that any possible profit could be flown by global recession due to business shock or ongoing uncertainty.
This article was generated from an automated news agency feed without amending the text.
