UK to spend extra £20bn to help businesses cope with US tariffs

The US currently imposes a 25% tariff on imports of steel, aluminium and cars, and a basic 10% tariff on most other imports from the UK and other countries.

British pound. (Photo: Amazon/VNA)

The UK has announced an additional £20 billion ($26 billion) in financial support for exporters, including those affected by US tariffs.

The move is aimed at helping businesses feel more stable and confident as the UK enters a "new era of global trade."

Tariffs imposed by US President Donald Trump have added to the uncertainty for British businesses, which are already concerned about the risks in the new trading environment.

The US currently imposes a 25% tariff on imports such as steel, aluminum and cars, and a basic 10% tariff on most other imports from countries such as the UK.

The UK government said the boost would bring the total lending capacity of the UK Export Credit Facility (UKEF) to £80bn, with £10bn set aside to support businesses hit hard by tariffs in the short term.

UK Chancellor of the Exchequer Rachel Reeves said: “ The world is changing, and so supporting our leading businesses through the challenges ahead is vital.”

The support package also includes loans of up to £2m for small and medium-sized businesses.

In an article in the Observer newspaper, British Finance Minister Rachel Reeves also expressed her desire to build an "ambitious new relationship" with the European Union (EU), while still in the process of negotiating a trade agreement with the US.

In a separate article in the Observer on April 12, Ms Reeves stressed that the tariffs imposed by US President Donald Trump would have a far-reaching impact on the UK and global economies .

At the upcoming meeting of the International Monetary Fund (IMF), the British finance minister is expected to call for the establishment of a "more balanced global economic and trading system."

The UK economy grew at its fastest pace in 11 months in February, beating economists' forecasts, putting it on a stronger footing to weather the impact of tariffs.

Meanwhile, the director of the United Nations International Trade Center (ITC), Pamela Coke-Hamilton, warned on April 11 that tariffs and retaliation could have serious consequences for developing countries, even worse than cuts in foreign aid./.

Source: https://www.vietnamplus.vn/nuoc-anh-chi-them-20-ty-bang-anh-ho-tro-doanh-nghiep-doi-pho-thue-quan-cua-my-post1027501.vnp