There seems to be a bit of nervousness in government as the world anticipates US President Donald Trump’s tariffs announcement later today.
This is expected to be the most important day of the president’s second term on a global scale.
UK Foreign Secretary David Lammy has advised the UK to be prepared for the worst, as there is an anticipation in Whitehall that the president’s announcement will be loud, dramatic, and provocative.
However, there is also hope that whatever is announced can serve as a starting point for negotiations to reduce the impact of tariffs.
Talks are currently underway between London and Washington for a narrow trade deal that was initially discussed during the prime minister’s visit to the White House in February.
Progress is being made from the UK side, and the agreement could not only mitigate the effects of tariffs but also enhance trade relations in specific sectors, such as technology.
The government is expected to respond promptly after the announcement, emphasizing that this is part of an ongoing process and discussions are continuing.
Negotiators are willing to travel if necessary to finalize a deal, but the challenge lies in the content of the agreement and the concessions the UK is willing to make.
There is a possibility of reducing the Digital Services Tax for US tech giants, impacting tax revenues in the UK.
All of this adds to the complexity as the government navigates its relationship with the EU amid uncertainties and unpredictability from the US president.