Trade wars - how will it effect the UK?

China makes most of the worlds chips etc.

BlessedArt

It’s a bit of an outdated perspective to view US imports to the UK strictly through the prism of physical manufacturing. That’s no longer the world we live in. We are literally typing our posts on US based tech. Gransnet/Mumsnet cannot exist without the ad money via US companies like Google. Even thinking about China manufacturing US goods like phones and processors, the money still flows back to the US in too many ways. Then there services like Amazon, Facebook, Netflix. We also import medical machinery and parts from the US. Globalisation has meant that economically the world is interwoven in such a manner that trade wars between major economies will have global impact. The UK is no exception.

Most of the hardware and microchips are not made in the USA though BlessedArt, and the USA doesn’t manage all the platforms either, so although it would obviously have a huge impact, they don’t have a monopoly. I’d assumed the figures for hardware and software were included in the import and export figures, apologies if that isn’t the case.

Totally agree WW.

China will happily jump in and sell goods to all of us, much cheaper than we ever got them from America. I don’t understand why Trump can’t see this - or maybe he can but he doesn’t care!

FGT, why does Trump have to apply tariffs at all?
Why create a situation that could cause a wide recession? How has the US been treated "terribly"

Why not just negotiate if he isn't happy? (Fair enough re funding NATO).

Why do you support this terrible dictator who lies at every turn and is pulling his own country apart with acts of revenge to anyone who was "nasty" to him. (like the sackings in the FBI, he's pulling a crime agency apart - how is that good?)

How in anyway at all is he good for the UK Why dont you stick up for the UK?

Yes, there is a meeting this week and a bigger one in a month I think, when I am hoping that closer ties will be forged.

The EU is far bigger than the USA and so has much more economic clout.

I am sure Trump will try to go for divide and rule - it is what bullies do - and we know because of its strength Trump has never liked the EU. But his silly unrealistic demand for parity in trade is ridiculous. He doesn’t seem (or doesn’t want )to understand the capitalist system.

He needs to be careful, China is quietly waiting in the wings and I can see that they will make a successful bid for world economic domination if Trump continues on the path he is on.

It’s a bit of an outdated perspective to view US imports to the UK strictly through the prism of physical manufacturing. That’s no longer the world we live in. We are literally typing our posts on US based tech. Gransnet/Mumsnet cannot exist without the ad money via US companies like Google. Even thinking about China manufacturing US goods like phones and processors, the money still flows back to the US in too many ways. Then there services like Amazon, Facebook, Netflix. We also import medical machinery and parts from the US. Globalisation has meant that economically the world is interwoven in such a manner that trade wars between major economies will have global impact. The UK is no exception.

FriedGreenTomatoes2

We in the UK are all ‘part of Europe’! Geographically we stand within it….

The inept Starmer will find a way to botch our enviable advantage with Trump because it will mean admitting a Brexit bonus. 😁

But we do not have an ‘enviable advantage with Trump’. All we have is a current position where we export less than we import from USA. Don’t kid yourself that he wouldn’t sell us down the river if it suited him.

Chagos

FriedGreenTomatoes2

The EU talks of retaliation rather than looking at the issues as to why it is viewed as having treated the US terribly.

Time to address the root causes / failings surely?

They can’t counter irrationality. Worldwide condemnation of Trump’s tariff system are coming thick and fast, and what Europe needs to do is stand firm with the rest of the world. There isn’t another option. If he carries on with this there will be a worldwide recession.

We in the UK are all ‘part of Europe’! Geographically we stand within it….

The inept Starmer will find a way to botch our enviable advantage with Trump because it will mean admitting a Brexit bonus. 😁

Casdon

It’s every country that the USA has a deficit with that Trump is targeting, that doesn’t include us, as we import more than we export to them. We may still be subject to more taxes from them, but as I said earlier we’re a bit player. I completely agree that we should be forging our links with the the EU, Starmer is with the leaders today, which is a good sign.

I agree Casdon and I also see myself as still part of Europe being half French

The EU talks of retaliation rather than looking at the issues as to why it is viewed as having treated the US terribly.

Time to address the root causes / failings surely?

Quite apart from the democratic Leave vote,

But that's all in the past now, we 've moved on, don't you know?

he will be Public Enemy No 1 if businesses are hit with tariffs following Reeves's disastrous budget

Reeves budget wasn't disastrous for the 'upper end' of businesses , which would be finance. Financial services comprise the greater part of our exports to the US (two thirds) and as they charge huge fees I think they will be able to take the hit; so will their clients...

There is an inherent, and not unreasonable, dislike of being told what to do, or how to run our affairs, by the leader of a foreign country .

The EU seems to think America’s demands are unacceptable.
How dare Trump demand the EU pays for its own defence?
How dare Trump demand parity of tariffs?

Please EUrophiles explain why the EU is so resistant to reasonable requests? Why do they think America should tolerate spongers?

Ireland pays nothing for its defence. It steals taxes that should be paid in the country were the profits arise. Their hypocrisy and hatred of Trump and Israel is disgraceful.

Trump has effectively shot US business in the kneecaps. We're so busy wondering what his tariffs mean for US that maybe we're blind to what it's going to mean to American businessmen when they lose our business. I'll bet there are many who now regret voting him in, as they blinded themselves to the reasons why he even stood in the first place (not for the good of America, that's for sure). Think about it.

It’s every country that the USA has a deficit with that Trump is targeting, that doesn’t include us, as we import more than we export to them. We may still be subject to more taxes from them, but as I said earlier we’re a bit player. I completely agree that we should be forging our links with the the EU, Starmer is with the leaders today, which is a good sign.

Casdon

FriedGreenTomatoes2

Trump is preparing a trap for Starmer. If the PM shows favour towards the EU in any retaliatory measures Brussels makes then we will suffer. If he doesn’t the UK will be protected and maybe Starmer will have to reel in his joiner tendencies. Quite a challenge for one of the most politically inept PM’s we’ve ever had. I also think Trump will lean on Starmer regarding the Chagos islands.

We wouldn’t suffer as much in that scenario as we would if we rebuild our ties with Europe, given we have far more interdependencies with the EU than with the USA.

every country that has a trade deficit with the USA will suffer.. because Trump CAN make us.. he is not interested in retaliations..

Changing our tariffs will not make the slightest difference

I agree with whichever poster said we should aim to become more self sufficient and get closer ties to Europe

PoliticsNerd

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.

Strangely we don’t have a European market. Though our products are expensive people save for them so a tariff could be the breaking point.

FriedGreenTomatoes2

Trump is preparing a trap for Starmer. If the PM shows favour towards the EU in any retaliatory measures Brussels makes then we will suffer. If he doesn’t the UK will be protected and maybe Starmer will have to reel in his joiner tendencies. Quite a challenge for one of the most politically inept PM’s we’ve ever had. I also think Trump will lean on Starmer regarding the Chagos islands.

Isn't he just? Starmer will have to tread very carefully on this one. Quite apart from the democratic Leave vote, he will be Public Enemy No 1 if businesses are hit with tariffs following Reeves's disastrous budget.

David49

Although there may well be increases in Tariffs there will also be reciprocal Tariffs, that will offset any changes to a degree
My guess is we won’t notice much change.

Actually, David, that is more or less my guess, too.

It could be more noticeable if this 'war' drags on, but with the US dependency on imports and Musk taking physical control of the federal finances there could be a lot of internal US chaos on the not so distant horizon.

FriedGreenTomatoes2

Trump is preparing a trap for Starmer. If the PM shows favour towards the EU in any retaliatory measures Brussels makes then we will suffer. If he doesn’t the UK will be protected and maybe Starmer will have to reel in his joiner tendencies. Quite a challenge for one of the most politically inept PM’s we’ve ever had. I also think Trump will lean on Starmer regarding the Chagos islands.

We wouldn’t suffer as much in that scenario as we would if we rebuild our ties with Europe, given we have far more interdependencies with the EU than with the USA.

Although there may well be increases in Tariffs there will also be reciprocal Tariffs, that will offset any changes to a degree
My guess is we won’t notice much change.

Trump is preparing a trap for Starmer. If the PM shows favour towards the EU in any retaliatory measures Brussels makes then we will suffer. If he doesn’t the UK will be protected and maybe Starmer will have to reel in his joiner tendencies. Quite a challenge for one of the most politically inept PM’s we’ve ever had. I also think Trump will lean on Starmer regarding the Chagos islands.

He lied, ronib. Labour have turned out to be very good at that.