Mad scramble underway to bag US trade deal before Trump’s tariffs kick in – as UK economy flatlines
A MAD scramble is underway to secure a trade deal with the US before punishing tariffs are triggered — pouring more misery on the flatlining economy.
Fears are growing in Whitehall that a pact may not be struck before Donald Trump’s “Liberation Day” kicks in next week.
Negotiations are taking place to avoid the 20 per cent blanket surcharge on British goods heading to the US.
Sir Keir Starmer said: “Obviously, any tariffs are concerning and we’re working hard with the industries and sectors likely to be impacted.
“None of them want to see a trade war, which is why we’re engaged in discussions.”
Car firms held talks with ministers yesterday, fuming over facing 25 per cent tariffs on imports from April 3.
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No10 are adamant they are taking a pragmatic approach, meaning a deal could be struck after levies kick in.
Our Digital Services Tax of 2 per cent on tech, including on US firm Amazon, may be used as a bargaining chip.
It came as the Office for National Statistics yesterday revealed there was no growth for July to September last year and for the last three months of 2024 it was 0.1 per cent.
More positive signs showed households’ disposable income per head rose by 1.7 per cent from October to December.
Chancellor Rachel Reeves said: “Getting more money in working people’s pockets is my number one mission.”
It follows the Spring Statement, which revealed growth for 2025 halved to 1 per cent.
National insurance rates for firms also rise next week.
Shadow Chancellor Mel Stride said: “With Labour’s Jobs Tax coming in next week and potential US tariffs, the Chancellor must urgently think again.”
It also emerged steel tycoon billionaire Lakshmi Mittal, plans to leave the UK amid changes to non-dom tax.
THE SUN SAYS: No-grow woe
RACHEL Reeves’ sunny delivery of her Spring statement could not conceal the bleakness of our economic outlook.
And it’s got even worse since.
It is now confirmed Labour, its core mission “growth”, achieved almost none after taking office: Zero in its first three months, just 0.1 per cent in its second.
To add to No10’s pain, growth under the Tories in the first six months of 2024, already described as “going gangbusters” by a top economist, was revised UP.
Sadly the worst is yet to come.
Within days the jobs tax from October’s Budget comes in, hammering firms already on the brink.
And unless Downing Street rapidly secures an exemption, Donald Trump’s ludicrous tariffs will crush all hope of green shoots.
There’s a simple lesson for this Labour Government and the Left generally.
You cannot tax your way to growth and prosperity. Ever.