Donald Trump risks having a “really damaging impact” on the global economy as he pursues tariffs against the US’s nearest neighbours, a senior Cabinet minister has suggested.
The US president has introduced a 25% levy on goods coming from Mexico and Canada, and a 10% trade tax on Chinese goods, which will come into effect on Tuesday.
The penalties have sparked fears of a new era of trade wars across the globe.
Home Secretary Yvette Cooper, the first senior British Government figure to respond to the announcement, said the UK wanted to break down trade barriers, not put them up.
Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see
Asked about Mr Trump’s announcement, she told the BBC’s Sunday with Laura Kuenssberg: “Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see.”
Canada and Mexico, the US’s nearest neighbours and largest trading partners, have both vowed to counter the levies with retaliatory tariffs of their own on US goods.
The US tariffs are aimed at forcing the countries into doing more to prevent illegal migration into America, as well as the flow of the drug fentanyl.
Critics of the trade penalties have warned they could also fuel inflation in the US economy, driving up prices.
Ms Cooper also told the BBC that the UK’s focus was “on building trade links and better trading relationships, and removing barriers to trade, with the US, and also with other European countries and with countries right across the world”.
“We want to reduce the barriers to trade, make it easier for businesses,” she added.
The Government’s opponents have called for widely differing approaches to the potential threat that tariffs could also be placed on UK goods.
While the Liberal Democrats have called for the UK to agree a customs union with the EU, Conservative shadow business secretary Andrew Griffith said Sir Keir Starmer should pursue closer trade ties with the US.
The Prime Minister should “be rediverting his plane” from Belgium – where he will meet EU leaders on Monday – to Washington DC, the senior Tory said.
Ministers have previously said they do not believe the US will impose tariffs on the UK, as America does not have a trade deficit with Britain.
Sir Keir has, meanwhile, insisted the UK does not need to make a choice between closer ties with Europe or with the US.
