Shares in the US have bounced back amid fears that the UK is going to be hit by President Donald Trump’s tariffs on Wednesday as the US president’s threats of a global trade war spark fears of a global recession.
April 2 will be “Liberation Day”, according to Trump, where he will unveil any tariffs on any country that “treats the US unfairly”. Conflicting signals about the scope of the expected tariffs are increasing nerves about a trade war which could tip the US into a recession risking a slowdown for businesses.
The degree and duration of Trump’s forthcoming tariffs remains unknown. Senior members of Sir Keir Starmer’s government have been engaged in intense negotiations over recent weeks as they race to agree a trade deal with the US, which could avoid the UK being included in the package of measures.
Starmer and Trump discussed “productive negotiations” towards a UK-US economic prosperity deal and agreed these will “continue at pace” in a phone call, Downing Street said on Sunday.
The Prime Minister is understood to have put “plans in place” to punish the US president if he includes Britain in his raid on global imports planned for Wednesday.
