Key points
- Tariffs deepen uncertainty for UK businesses
- £10b set aside to support those most affected
- Auto, steel and aluminium industries face 25pc tariff
ISLAMABAD: Britain said on Sunday it will expand financing support for exporters by £20 billion ($26 billion), including those affected by US tariffs, in an effort to give them stability and certainty in what it described as a new era of global trade.
The tariffs, introduced by US President Donald Trump, have deepened uncertainty for UK businesses about their exposure to the new trade regime, according to Reuters news agency.
“The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead,” Finance Minister Rachel Reeves said.
“Today’s announcement will do that just, with thousands of businesses right across the country set to benefit.”
“The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead.” – UK Finance Minister Rachel Reeves
The government said the increase raises UK Export Finance’s (UKEF) lending capacity to 80 billion pounds, with up to 10 billion pounds set aside to support those most affected by the tariffs in the short term, the news agency said.
The finance ministry said small businesses will also be able to access loans of up to £2 million as part of the package.
Sentiments
Analysts have warned that the 10 per cent levy on US imports of British goods could further weaken business and consumer sentiment in the UK, according to AFP.
Specific industries such as auto, steel and aluminium face even steeper tariffs as high as 25 per cent.
The United States is the UK’s single largest country trading partner, with over £1.2 trillion invested in each other’s economies.
It comes as the UK strives to broker a long-awaited post-Brexit trade deal with the United States.
Asked when it could be completed, Britain’s Business and Trade Secretary Jonathan Reynolds told Sky News on Sunday he could not give a timeline, saying that Trump was the “driving force and the decision maker… on the US side.”
