Response from London

From today, those British products cross the Atlantic and reach American customs will have a 10%”hike”. This means that – for the time being – the Scottish whiskey, whose Americans are the largest customers, will be more expensive for American consumers.

At the same time, however, British businesses are also concerned about increased costs, as they are likely to see reduced revenue, either due to reduced sales or due to reduced profit margin.

The first reactions were shown by the Stock Exchange in London. The FTSE 100 recorded yesterday losses of 5%, the largest daily fall from the Pandemic authorities, with the aerospace and defense industry being the most hit.

And all this, while the country is on the list of “favored” Trump duty countries, as the 10% was the smallest imposed by the US president. It should be noted that today, there will be demonstrations in downtown London by US nationals, in a wider wave of reactions of American citizens to their president’s decisions, with corresponding rallies in many American cities, as well as European capitals.

The first moves of the British government

One of the first statements by British Prime Minister Sir Kir Starmer, when the duties were announced on Wednesday, was “the country to maintain its clear mind”. A government spokesman even said today that “we will continue to continue exploratory work instead of rushing to retaliation.”

Starmer will spend the weekend by calling world leaders. The aim is to emphasize the importance of free trade, which is a warm supporter and to rally the rest of the world in a common strategy.

The British Prime Minister maintains his optimism, hoping that Trump duties will prove to be a good news for the country and for what he initially wanted to succeed: that is, to find where the island itself is placed, between the European Union and the United States, so that it can function as a pole. If this fails, the British government has made a list of 8,000 US products to examine – if it chooses retaliation – which of them will be affected.

The threats to the economy

At the same time, the Central Bank of England (BOE) is already preparing for growth in growth, with analysts discounting a new wave of interest rates in the year. British exports to the United States are valued at about 60 billion pounds and according to the National Statistical Service (OMS), automotive, drinks and foods are the sectors that will be more hit by tariffs. In fact, the automotive industry has estimated that 25,000 jobs are in danger, while other areas affected are chemicals, steel and aluminum.