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Apr 3, 2025 4:52 pm
Global Media Network
UK trade bazooka call over Trump tariff threat
UK business leaders are urging the government to create a UK trade bazooka to defend the economy against new tariff threats from the United States. The call comes as global trade tensions rise and firms warn that current protections are not strong enough. The British Chambers of Commerce said the UK faces serious risks if it does not act fast. The group represents thousands of businesses and warned that weak economic security could harm jobs and growth. It said the country has faced years of slow action and must now respond with clear steps. The warning follows a recent move by the US president, who threatened to impose a large tariff on UK goods. The threat is linked to a digital services tax that affects major US tech companies. This has raised fears of a trade dispute that could hurt both sides. Business leaders said the UK must prepare for a more unstable global trade system. They pointed to recent challenges such as Brexit, the Covid pandemic, and ongoing wars in Ukraine and the Middle East. These events have made trade more complex and less predictable for companies. The proposed UK trade bazooka would act as a strong tool to stop other countries from using pressure tactics. The idea is based on a similar system used by the European Union. That system allows the EU to respond quickly to unfair trade actions by other nations. Under such a plan, the UK could place limits on trade, investment, and market access if needed. It could also restrict foreign companies from public contracts or financial systems. These measures aim to protect national interests and prevent economic harm. The British Chambers of Commerce said new laws are needed to support this plan. It called for a range of tools that ministers can use when facing trade pressure. These tools may include tariffs, tighter checks on foreign investment, and rules on subsidies. At the same time, the group stressed that safeguards must be in place to protect UK businesses. Business leaders also asked the government to take a stronger role in European supply chains. They said UK firms should not be left out of key projects linked to the EU’s “Made in Europe” plan. They also called for more support for local companies in defence contracts. Another key suggestion is to create a special cabinet group focused on economic security. This group would help guide decisions and respond quickly to global risks. Leaders believe this would improve coordination and protect the economy. The head of the British Chambers of Commerce said the UK must act with urgency. She warned that weak economic security is already slowing growth and reducing competitiveness. She added that the current global environment requires a stronger and more direct response. The UK trade minister said the government agrees that fair trade is vital. He said steps are already being taken to support key industries and strengthen supply chains. He also noted that the government is reviewing whether new tools are needed to deal with economic pressure. The minister added that talks with European partners are ongoing. He said the UK is working to ensure that businesses remain part of wider trade networks. He stressed the importance of keeping markets open while also protecting national interests. However, experts warn that strong action against the US could carry risks. The United States is the UK’s largest trading partner. It accounts for about 20 percent of the UK’s global trade. US companies also have major investments in the UK economy. This means any trade conflict could have wide effects. While a UK trade bazooka could offer protection, it must be used carefully. Business leaders say the goal is not to escalate tensions, but to ensure the UK can respond when needed. The debate over the UK trade bazooka highlights a growing shift in global trade. Countries are now focusing more on security and resilience. As tensions rise, the UK faces pressure to act quickly and protect its economic future.
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