Trump Tariff VAT Threat Raises Prospects of Hit to UK
The surprise inclusion of Value Added Tax (VAT) in calculating tariffs has raised concerns over the possible impact on British businesses, making them potentially more exposed to US trade taxes. The UK's trading relationship with the US had suggested it would be less vulnerable to tariffs, but the latest move by President Trump has created uncertainty about the potential consequences for British exports. Analysts have warned that tariffs of 20% or more could be placed on the UK and EU, particularly affecting cars, pharmaceuticals, and food and drink.
- The introduction of VAT into the tariff calculation poses a significant challenge to the UK's trade relationships with the US, potentially upending established trade norms.
- How will the British government navigate these complex trade negotiations with the US, balancing competing interests and mitigating potential damage to British businesses?