London Backs Down on Heavy US Tariffs

In an interview with Sky News on Thursday, British Finance Minister Rachel Reeves expressed concern about the negative impact of the newly announced tariffs by the US President and clarified that the London government does not intend to escalate tensions with retaliatory measures. She said: "We are not in a position to escalate anything... A trade war is not in anyone's interest."

The US President announced on Thursday morning that from April 2, all cars and light trucks manufactured outside the US will be subject to a 25% import tariff; a decision that prompted a sharp reaction from Canada and an expression of regret from the European Union.

The Canadian Prime Minister described the move as a “direct attack on Canadian workers” and announced retaliatory tariffs; the European Commission President also called Washington’s decision regrettable in a statement and called for a negotiated solution.

However, unlike the harsh stances in Ottawa and Brussels, the British government’s position has so far been soft and considerate. The British Finance Minister, while emphasizing that such tariffs could increase inflation again, said: “We have tried hard to control inflation, these tariffs raise prices and make it more difficult for British companies to export.”

Referring to the ongoing talks between the two countries, he expressed hope that better trade relations with the United States could be established and any escalation of the confrontation could be avoided. This is while the United States is the number one export market for British cars and the imposition of such tariffs could cause serious losses for the British automotive industry.

This conservative stance by the British government is being taken while the country's economy is facing deep and structural problems after leaving the European Union. Many analysts believe that the growing dependence on the American market has made the London government more cautious in its trade positions, which has led it to avoid direct confrontation with Washington's aggressive policies.