UK-US trade fair, No 10 says in face of Trump tariff fears
Published On Feb 3, 2025, 9:34 AM
The UK and US maintain a significant trading relationship valued at around £300 billion, according to Downing Street, despite recent tensions over US tariffs imposed on Canada and Mexico. US President Trump has indicated that while the UK's trade relationship is currently 'out of line', it could be renegotiated. UK Prime Minister Keir Starmer is in Brussels to strengthen EU ties, but this could strain UK-US relations. The UK exports notable goods such as cars and pharmaceuticals to the US, which could be affected by potential tariffs. Concerns over a trade war have led to reactions from Canada and the EU, emphasizing that such conflicts yield no winners. While Starmer seeks to enhance trading relations, challenges loom as he balances both US and EU interests.
Stock Forecasts
IWL
Negative
Given the current tension between the US and the UK concerning trade tariffs, and the potential for a trade war that could adversely impact UK exports, investors may want to be cautious about UK export-related stocks. The conflicting interests between enhancing ties with the EU and the US could also create volatility in the market.