IN what he grandly proclaimed as “Liberation Day,” Donald Trump has imposed sweeping tariffs on imports from the UK and the European Union, touting them as a means to reclaim economic power for the United States. Yet, behind the bluster, the reality is that these tariffs—10% on UK imports and 20% on EU goods—reveal a leader more concerned with political theatre than genuine economic strategy.
Far from striking a blow for American industry, Trump’s move risks sparking a damaging trade war while exposing his own vulnerability in international negotiations.
The impact on the UK—and Wales in particular
The UK’s automotive and manufacturing industries stand to suffer immensely from these new tariffs. A 25% tax on all foreign car imports into the US could deliver a severe blow to British automakers, particularly those with deep ties to the American market. Welsh businesses, already grappling with post-Brexit trade complexities, could be disproportionately affected. Ford’s Bridgend plant closure in 2020 already sounded alarm bells about the fragility of the sector, and Trump’s move will do little to reassure those still fighting to sustain Welsh manufacturing jobs.
The UK’s prized exports, including Scotch whisky and Welsh lamb, are also under threat. The US has long been a crucial market for these industries, and the added costs from tariffs will only make British and Welsh products less competitive. The Scotch Whisky Association has already expressed alarm, estimating potential losses in the hundreds of millions. Welsh farmers, too, are facing a bleak future should the UK government fail to secure an exemption for agricultural exports.
Chadwick: “A destructive trade war”
Responding to Donald Trump’s announcement of new global tariffs, including on UK exports to the US, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “Donald Trump has launched a destructive trade war that threatens the jobs and living standards of people right across Wales.
“This trade war needs to be brought to an end as quickly as possible – and that means standing firm with our allies against Trump’s attempts to divide and rule. The Prime Minister should bring our European partners, as well as those in the Commonwealth like Canada and Australia, together in a coalition of the willing against Trump’s tariffs, using retaliatory tariffs where necessary and signing new trade deals with each other where possible.
“If the Government gives in to Trump’s threats, it will only encourage him to use the same bullying tactics again and again.”
A weak attempt at economic nationalism
Trump’s claim that these tariffs will restore American jobs is being increasingly dismissed by economists as economic self-sabotage. While protectionist rhetoric may play well with his base, the reality is that these policies are likely to raise costs for American consumers, disrupt supply chains, and provoke retaliatory tariffs from affected countries. Even US businesses that rely on British and EU imports are warning that these measures could cause severe economic disruption.
The timing suggests Trump is prioritising re-election optics over sound economic policy. His self-declared “economic independence” day appears to be a political stunt, designed to stir nationalist sentiment rather than address the deeper issues in the US economy. His administration has shown little appetite for meaningful negotiations, instead opting for headline-grabbing decisions that create instability in global trade.
The UK’s approach: Structured, not symbolic
In contrast, the United Kingdom applies import duties under its Global Tariff schedule (UKGT), which sets rates between 0% and 12% depending on the item. For example, cars imported from the US face a 10% tariff, meaning a £10,000 vehicle would incur a £1,000 charge. Agricultural goods are also affected; butter, for instance, carries a specific tariff of £158 per 100kg.
These rates are transparent, rules-based, and applied consistently—unlike the politically-motivated shock tactics now emerging from Washington. Additionally, the UK applies 20% VAT on most imports, calculated on the value of the goods plus any shipping and duty. As of April 2, 2025, no UK-US free trade agreement exists, so standard tariffs apply.
The UK Government’s response: Playing it safe
Sir Keir Starmer’s government has so far taken a cautious approach, hoping to negotiate an economic agreement with Washington that could soften the blow. Chancellor Rachel Reeves has acknowledged that while such a deal is desirable, it would not fully shield the UK from the wider economic fallout of Trump’s aggressive trade policy. She has also stressed the importance of ensuring that global trade remains free and fair, rather than allowing it to be dictated by the whims of a single US president.
While the UK seeks diplomatic solutions, it is crucial that Wales’ specific interests are not overlooked. Welsh industries, from steel to agriculture, have a stake in how these negotiations unfold, and the government must push for protective measures that prevent Wales from bearing the brunt of these reckless tariffs.
The bigger picture: A lose-lose strategy
Ultimately, Trump’s tariff strategy is a high-risk gamble that could backfire spectacularly. The threat of a global trade war looms large, and with inflationary pressures already weighing heavily on the US economy, Trump may find himself the architect of a crisis rather than an economic resurgence.
Meanwhile, for the UK, this latest display of American strong-arming serves as a reminder that genuine trade partnerships are built on stability and mutual respect—not on the erratic policies of a single leader looking to score political points.
For Wales, the challenge now is ensuring that its industries and workers are not left exposed to the fallout of Trump’s misguided economic nationalism. The UK government must stand firm and make it clear that it will not accept a trade relationship dictated by US political posturing. If Trump believes he can roll over Britain and its industries without consequence, he may be in for a surprise.
