Trade wars - how will it effect the UK?

Importing from the US is very expensive import charges and taxes are very high now, many of the brands are built elsewhere and not direct from US, the bulk materials,oil grain and other commodities have agreed tariffs. One contentious issue is food they want to send us beef and GM products

Exports many are luxury products, cars, scotch whisky, specialist food products, there probably will be changes that affect some, but not critical

J52

“I wouldn’t be surprised if he’s waiting for an invitation to a State visit, such are his ego and enjoyment of such occasions.”

That could be our Trump card! Sorry couldn’t resist.

I sincerely hope that he is not invited. He needs to be a pariah so far as democratic countries are concerned.

I’d prefer we show some solidarity with Canada, which is a Commonwealth country, after all, and move closer to Europe.

I’m not sure what actually comes from the US these days except Ford cars and they are outnumbered by Japanese, Korean and Chinese cars now. We used to get cotton goods here but it is no longer the case, sadly, because they were good quality. .

maizie yes - Canada needs our support, and as I’ve said on another thread, I am hoping that the EU meeting in Brussels of state leaders plus the U.K., will come up with a plan of support for Canada.

We also need to show solidarity to Greenland.

Trumps statement of intent to put tariffs on the EU, but hinting at leaving theU.K. alone should be treated with contempt by us all..

Solidarity against a bully is what is needed and immovable principles.

Brussels must get its act together.

The main UK imports from the US by value are petroleum, cars and various electrical goods and components. The UK's main exports to the US are machinery, cars and pharmaceuticals.

European Ford cars are built in Spain, Romania and Cologne. We don’t import them from the US.

J52

European Ford cars are built in Spain, Romania and Cologne. We don’t import them from the US.

I'm sure that's true, but the official data states that non-railway vehicles are the UK's second biggest import from the US.

J52

European Ford cars are built in Spain, Romania and Cologne. We don’t import them from the US.

My understanding is that car components are made worldwide though, so I wouldn’t be confident that there isn’t a part of cars made in Europe that isn’t sourced from USA, China, or wherever else. The pandemic really proved that to me, because I was involved in an accident, and my car went into a bodywork repair shop. There was a Hyundai car that had been there for over 6 months waiting for a light component that was only made somewhere that couldn’t get parts to the UK because of the container ship stuck in the Panama Canal. There were none available in Europe at all.

In any case, business services (business and management consulting and public relations services) accounted for about half of all UK imports from the US.

Exactly that Casdon. The UK might not import many complete cars, but it trades in components with the US.

growstuff

Exactly that Casdon. The UK might not import many complete cars, but it trades in components with the US.

Apparently the car parts situation will make the application of tariffs ‘interesting’ as they can cross the same border several times in the process of manufacturing cars.

growstuff

Exactly that Casdon. The UK might not import many complete cars, but it trades in components with the US.

Yes of course, but you mentioned cars specifically.

J52

growstuff

Exactly that Casdon. The UK might not import many complete cars, but it trades in components with the US.

Yes of course, but you mentioned cars specifically.

I was quoting the official figures from the government. It would appear their figures include car components.

I’m not sure but quite a few Mercedes , BMW models are actually built in the US and sold to the UK, maybe Asian brands too. Very few complete cars from the main US brands - Ford, GM, Chrysler.

Of cars built in UK, Jaguar Landrover sell a lot along with Aston Martin, Bentley and RR, plus a few other smaller brands. They are mostly luxury or ultra sports models, they are not price sensitive. Generally they are cheaper in the US than UK because of our high taxation.

The other issue is tech, US brands built elsewhere Apple, HP, Tesla and others, products made in far east, benefiting their US owners.
Add to that the US companies trading in the UK, MacDonalds, Starbucks, Amazon not paying UK tax
Add the online income Google, Microsoft, Twitter and all the others not paying UK tax.

Add it all together I think the US has a pretty good deal now.

Thanks David49 for the info. Every days a school day!

I don't think anyone has talked about Fentanyl yet on this thread.

I think this is why Trump is behaving as he his. Mexico and Canada are both "allowing" it to get into America and it's a massive problem there.

Once he has a deal about the border with them he'll make changes and the taxes will be very much reduced.

China is responsible for most of the "precursor chemicals" which they export to Mexico and Canada.

He is also fed up about America buying European cars. Toyota was bullied into bringing manufacturing into America last time. Now he'll want all the others to bring their car plants over.
I'm sure it's more than cars but I do think Fentanyl is his main driver.

Tizliz

It will kill our business as 70% of our sales are to USA, very worrying

Would it help your business if the trade barriers currently acting on sales to the EU were improved Tizliz.

I'm so sorry you're having to contemplate this.

growstuff

The main UK imports from the US by value are petroleum, cars and various electrical goods and components. The UK's main exports to the US are machinery, cars and pharmaceuticals.

Thanks growstuff.

Luckygirl3

UK government needs to sit tight and play the long game. They are wise not to jump in.

Exactly

David49
The Volkswagen plant in Mexico is one of their largest plants.

You know, NotSpaghetti, I find it really hard to believe that Trump is genuinely worried about fentanyl. I know it’s a massive problem in the US, but I find Trump’s ‘concern’ completely unconvincing.

The UK is in a weak financial position overall and is not in any position to argue with Trump about tariffs. I imagine that we will meekly accept whatever terms Trump offers us . Not sure how Milliband will cope as the deal is bound to include buying American oil and gas. We have been well outplayed?

Everyone is being outplayed.

Luckygirl3

Everyone is being outplayed.

I’m not convinced yet lucky

Personally I think that there is all to play for.

Canada is so far taking him at his own game and we must support them.

Likewise the EU, - it seems that tariffs are going to wing their way, so it must be reciprocated and we must stand firm!!

No bully should ever win.

Luckygirl3

Everyone is being outplayed.

There is a coup being effected in the US. So far there doesn't seem to be much resistance, I think because everyone is either totally gobsmacked if they're not in agreement.

I don't know what Trump is going to do about the financial markets as they all seem to be going against him... His billionaire followers won't be liking that very much though...

I don't think that the rest of the world needs to cave into Trump's demands...