Could it be that Britain has inadvertently positioned itself quite well amidst Donald Trump’s trade war with most of his economic partners?
At first glance, this might seem unusual, considering the potential economic damage caused by blanket tariffs. The unpredictability of Donald Trump, who even catches his own staff off guard with his decisions, adds to the uncertainty. However, compared to other countries, Britain appears less likely to be subjected to the aggressive tariffs the president is advocating for.
Trade war latest: Trump pauses Mexico tariffs for a month
Trump’s main target is trade deficits, particularly in goods. The US runs significant trade deficits with China, Mexico, and Canada, prompting the president to push for more domestic production and fewer imports.
In the short term, it seems that the UK stands to benefit from these dynamics. Being outside the EU means the UK won’t automatically face the same trade terms as its European neighbors if tariffs are imposed. Additionally, the UK, with larger trade deficits than the US, imports more from America than the reverse.
Please use Chrome browser for a more accessible video player
How will Trump’s tariffs affect Brits?
Further, the UK government has been exploring enhanced ties with China, which differentiates it from most other developed countries. This could be leveraged in negotiations with the US, potentially altering existing tariffs for favorable trade terms.
Whether the UK will indeed seal a trade deal with the US in the near future remains to be seen, given the unpredictable nature of Donald Trump and his administration.