Business Secretary worried about US tariff war that would hit the public
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Business Secretary Jonathan Reynolds has said he is worried about a potential trade war after Donald Trump returns to the White House and stressed that tariffs are “paid for by your own people”. Mr Trump has signalled he is willing to introduce tariffs on goods coming from Canada and Mexico, two of the US’s biggest trading partners, as well as China, in a bid to protect America’s homegrown industries.
In recent days, the president-elect has spoken of establishing a new US government agency tasked with collecting revenue from tariffs. Financial markets around the world have started to react to the possibility the trade taxes could be applied more widely, which is believed to have influenced a spike in Government borrowing costs in the UK.
With the right focus on boosting green growth, securing economic resilience and rebuilding vital relationships, the UK can turn the tide and reclaim its place as a leader in global trade. “It’s going to be a challenging time for anyone who is responsible for trade in a big economy because of some of those pledges that were made in the campaign,” Mr Reynolds told Sky News of Mr Trump’s return.
Asked if he was worried about a tariff war, he said: “I am, because the UK is a very globally-orientated economy, so the exposure, the danger to the UK is actually greater than even some comparable countries around that.”. He added: “Ultimately, tariffs are paid for by your own people. So, it’s got real pressures in terms of inflation, in terms of your ability to employ people, to export to other markets.”.
