The UK should refrain from retaliating if Donald Trump imposes trade tariffs, former chancellor Jeremy Hunt has advised, as ministers prepare for potential economic measures from the US.
Hunt cautioned that the UK lacks the economic strength to engage in a trade war with the United States, echoing concerns raised after Trump launched tariffs on China. The US president introduced a 10% tariff on Chinese goods and has plans to impose 25% tariffs on Canada and Mexico. While Beijing has responded with tariffs on American fossil fuels and agricultural machinery, British officials have yet to confirm whether they would take similar action if UK imports are targeted.
Speaking on a political podcast, Hunt explained, “Retaliatory tariffs are typically used as leverage to encourage the removal of imposed tariffs. However, our goods exports to the US account for less than 0.5% of their GDP, meaning we have very little influence in this situation.”
He added, “Britain has long thrived on free trade, being the first country to unilaterally remove trade barriers in 1846. Engaging in a trade war would be detrimental to UK manufacturers, many of whom rely on imported materials, and could contribute to inflation. We should avoid becoming entangled in such disputes.”
Trump’s latest tariff decisions signal the beginning of a wider global trade conflict, with the UK’s stance remaining uncertain. While he has indicated that Britain’s trade policies are “out of line,” he also suggested that a resolution could be found.
Despite concerns over potential tariffs, Trump has spoken positively about his relationship with the UK prime minister, raising hopes in Whitehall that Britain might avoid the measures currently affecting China and those being considered for Canada and Mexico. Starmer is reportedly attempting to persuade the US administration by highlighting American trade data, which shows a US trade surplus with the UK in 2023, as opposed to British figures that indicate the opposite.
Ministers are aware that the UK could be drawn into the dispute at any moment and have been holding discussions for weeks about how to respond. During Trump’s first term, the UK was affected by US tariffs on the EU, prompting Britain to impose duties on American exports such as whisky, blue jeans, and motorbikes.
Following Brexit, the UK has the opportunity to set its own trade policies independently of the European customs union, potentially avoiding entanglement in a broader US-European trade conflict. Hunt’s remarks increase pressure on Conservative leader Kemi Badenoch to support the government’s decision should it opt against retaliatory measures. While previously serving as business and trade secretary, Badenoch has not outlined a specific approach to a potential trade dispute with Washington but has encouraged the pursuit of a broader trade agreement with the US.
Hunt expressed support for Badenoch’s cautious approach in the early stages of her leadership, though he advised against shifting the Conservative Party to the right in an attempt to attract Reform Party voters.
“The best strategy is not to emulate them, as our voter base differs significantly from Reform’s,” he said. “Many Reform voters will never back the Conservatives, so we need to be pragmatic about our electoral strategy.
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