‘Devastating’: the groups of companies warn Trump rates will face a hard blow to the United Kingdom companies
The groups of companies warned him Donald Trump’s rates It will have a “devastating” impact on the United Kingdom companies that are already struggling with slow growth.
Expert Also felt more turbulence in financial markets while investors react to radical measures influence global trade.
Trump confirmed a 10% rate It was imposed on US imports as the UK assets, the same level as the global “basic line” that was preparing for countries around the world.
In the meantime, a 25% import tax has been confirmed for steel, aluminum and cars.
THE Federation of small businesses (FSB) warned that the move will face an “important blow” for small and medium -sized enterprises, which are already facing pressure from weak growth at home.
Currently, 59% of the small exporters of the United Kingdom sell in the US market, said the FSB.
“The rates cause unspeakable damage to small businesses trying to make its way into profit while the domestic economy remains flat,” said Tina McKenzie, president of the FSB policy.
“The relapses suffocate growth, will damage the opportunities and seriously dent in the global economy.
“The United Kingdom Government It should now be ready to provide emergency assistance to all SMEs at risk of collapse. “
Influential business group, the Confederation of the British industry (CBI), said that the announcements were “deeply worrying” for companies and probably would have had branches all over the world.
Rain Newton-Smith, the CEO of the CBI, said a “calm and calm reaction from the Government of the United Kingdom It is the right answer “, adding:” The United Kingdom companies need a measured and proportionate approach that avoids a further escalation.
“The retaliation is added only to the interruption of the supply chain, slowdowns and volatility of rest in prices.”
Other experts have suggested that the United Kingdom companies that export to the United States will be forced to review their commercial agreements with the largest economy in the world.
Emma Rowland, commercial policy consultant at the Institute of DirectorsHe said: “The United States are the largest single commercial partner of the United Kingdom and an important export market for the United Kingdom industries, in particular automotive, pharmaceutical, chemical and whiskey.
“Exporters to the United States will be forced to review the feasibility of the United States as a destination for their goods and as a position of the supply chain.
“Alternatively, they may have to reduce their profit margins to remain competitive.”
In the meantime, analysts have said that the entire range of rates has aroused new concerns in financial markets.
Susannah Streeter, head of money and markets for Hargreaves LansdownHe said: “Since the threats have turned into facts, the general for the general tariffs on US commercial partners has nervous investors”.
Futures Trading – which indicates the movements of the shares before the opening of the markets – for the S&P 500 index of the United States, decreased by 1.7% on Wednesday evening.
The US dollar was also weakening against the pound and euro.
But the United Kingdom may have been saved part of the pain for other countries, he suggested Streeter.
“The United Kingdom could have been treated a better hand than some nations, but since it is so intertwined with the global economy, growth resistance seems inevitable,” he said.
“The government is adopting a pragmatic approach and hoping for a commercial agreement, which can alleviate the tariff burden more, but the result is uncertain”.
