In a significant move aimed at alleviating the burden on British companies affected by international trade tensions, UK Prime Minister Keir Starmer has announced the suspension of tariffs on 89 products. This decision comes in response to the ongoing trade war instigated by the United States under former President Donald Trump.
Details of the Tariff Suspension
The suspension, which encompasses a diverse range of goods—from electric vehicle batteries to agave syrup—will remain in effect until July 2027. This strategic initiative is part of a broader effort by the UK government to shield domestic businesses from the repercussions of U.S. tariffs. According to reports, this suspension is projected to save UK firms approximately £17 million, potentially allowing for cost reductions that could benefit consumers.
The UK has faced considerable trade challenges, including a blanket 10 percent tariff imposed by the U.S. on April 2, alongside 25 percent duties on aluminum, steel, vehicles, and car parts. These tariffs have significantly impacted British exports, particularly in the steel sector, where the U.S. remains the second-largest market after the European Union.
Government Actions and Future Outlook
In a related development, the House of Lords has recently endorsed emergency legislation that empowers the government to place British Steel, the last remaining source of virgin steel in the UK, under state control. This move underscores the government’s commitment to safeguarding vital industries during turbulent economic times.
“We will keep calm and fight for the best deal with the U.S.,” Starmer stated, emphasizing a dual approach that involves negotiating with the U.S. while simultaneously collaborating with other nations to reduce trade barriers.
The products benefiting from the newly announced tariff suspension include not only electric vehicle batteries but also essentials such as pasta, canned pineapples, fruit juice, coconut oil, plywood, and various plastics. This comprehensive approach reflects the UK’s strategic response to the complex dynamics of global trade.