Business leaders call for calm resolution as Trump threatens new tariffs on UK firms

Business leaders in Greater Birmingham today called for the Government to keep a cool head in a bid to remove the threat of new tariffs imposed by US president Donald Trump.

The UK is one of eight countries facing the threat of new tariffs from the president following opposition to his push to take over Greenland.

The 10 per cent tariffs will apply to goods imported to the US.

Sir Keir Starmer is set to make a statement this morning – after telling the president in a phone call that it would be “wrong” to apply tariffs to key allies.

The White House has intensified calls for the US to take control of the autonomous Danish territory on national security grounds, alarming both European allies and those living on the island.

Raj Kandola, acting deputy CEO at Greater Birmingham Chambers of Commerce, said: “These new tariffs imposed by president Trump are unhelpful for businesses, particularly here in the West Midlands with our strong manufacturing and automotive bases which rely heavily on exporting to the US.

“However, as we know from previous experience, tariffs can be lifted at any time. We await the Prime Minister’s response this morning to understand the full impact and how the UK plans to respond to this development.

“We urge the Government to negotiate calmly to remove the threat of these new tariffs.”

Last year, president Trump announced a 25 per cent tariff on all imports of steel and aluminium under Section 232 of the Trade Expansion Act of 1962, citing unfair trade practices and global excess capacity harming US industries.

Although the UK exports a relatively small amount of steel and aluminium to the US (£700m), its exports of steel and aluminium products are worth much more - around £2.2bn, or 5 per cent, of UK exports to the US.

However, a trade deal between the UK and US was announced in May – bringing import taxes on cars and car parts coming into the US down from 25 per cent to 10 per cent.