UK Prepares Retaliation as Trump’s Tariffs on Cars and Goods Near Implementation

With US tariffs set to take effect on April 2, Prime Minister Keir Starmer weighs economic countermeasures while continuing last-minute negotiations.

Donald Trump’s 25% tariffs on car imports and other goods, including from the UK, are slated to begin on April 2, 2025, as part of his 'America First' trade agenda.
Prime Minister Keir Starmer has abandoned hopes of avoiding the tariffs and is preparing potential retaliatory measures, including tariffs on US goods.
The UK is considering scrapping its digital services tax as a bargaining chip to secure a trade deal and avoid the tariffs, though no agreement has been reached.
The tariffs are expected to harm UK supply chains and economic growth, with the Office for Budget Responsibility warning of a potential 1% GDP reduction.
Last-minute negotiations between UK and US officials are ongoing, but Trump’s unpredictability complicates efforts to finalize a trade deal focused on future technologies like AI and bioscience.