The British government announced a series of measures to protect businesses and households from the economic impact of President Trump’s tariffs:
– Tariffs on 89 products will be suspended for about two years.
– Financing support for exporters will be increased by 20 billion pounds (£26 billion) through partial loan guarantees.
– Small businesses will have access to loans of up to £2 million.
The government aims to help companies navigate the uncertain global trade environment, as Trump has raised tariffs on most imports, including those from Britain.
Rachel Reeves, the Chancellor of the Exchequer, said the government must rise to meet the moment and rise to the challenge of protecting the economy from global disruption.
Recent government interventions include:
– Easing rules on electric vehicle sales after Trump imposed a 25% tariff on cars imported to the US.
– Relaxing regulations to speed up clinical trials to support the life sciences sector.
– Taking control of British Steel, the country’s last large plant producing crude steel, to protect jobs and ensure continued operation.
Germany, Italy, Portugal, and Spain have announced more than 50 billion euros worth of financial support for their businesses affected by tariffs.
The British economy is relatively trade-intensive and vulnerable to outside shocks, with a weak European Union likely to weigh on the economy and global turmoil exposing the nation’s finances.
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