Conservative leader Kemi Badenoch has cautioned Britain against retaliating if Donald Trump proceeds with new tariffs on UK goods, warning that such measures would “just make everyone poorer.” She urged Labour ministers to focus on securing a “comprehensive” trade deal instead of engaging in a trade war.
Despite ongoing efforts by Prime Minister Sir Keir Starmer and Business Secretary Jonathan Reynolds to negotiate an exemption, UK exports are expected to be affected alongside other global imports.
Badenoch stressed the importance of shielding key industries such as steel and automotive manufacturing, which she warned could be “severely crippled” by the tariffs. Speaking to LBC, she said:
“Some people will want us to have trade retaliation, that just makes everyone poorer. This is a time for significant diplomacy… the people who will suffer aren’t just our exporters but also the American consumer.”
She dismissed calls for the UK to distance itself from the US in response to Trump’s policies, arguing that maintaining close ties was essential for national security.
“We do not want a world where NATO is fragmented, that is very bad for our national security. We need to do what is in our national interest; where we disagree, we should say so,” she said.
Trump has already announced a 25% tariff on foreign-built vehicles, a move that poses a significant threat to the UK auto industry, which exported over 101,000 vehicles worth £7.6 billion to the US last year. Additional tariffs—potentially as high as 20%—are expected to take effect on April 2, targeting UK goods in response to VAT rules Trump considers unfair.
The looming trade restrictions come at a challenging time for Britain, following Chancellor Rachel Reeves’ recent budget cuts aimed at stabilizing public finances. Badenoch’s remarks highlight the difficult balancing act facing the UK government as it navigates economic pressures while maintaining strong transatlantic relations.
