Britain to Boost Exports Amid Tariff Turmoil

Britain announced on Sunday that it will increase financing support for exporters by £20 billion ($26 billion), including those affected by US tariffs, in an effort to provide stability in what it described as a new era of global trade.

The tariffs imposed by US President Donald Trump have deepened uncertainty for British companies regarding their exposure to the new trade regime.

The United States has imposed 25% tariffs on steel, aluminum, and car imports, and 10% basic tariffs on most other imports from countries such as Britain.

The British government said the increase brings UK Export Finance’s lending capacity to £80 billion, with up to £10 billion earmarked to support those most affected by the tariffs in the near term. Chancellor Rachel Reeves said: “The world is changing, which is why it’s more important than ever to support our world-leading companies and help them overcome the challenges ahead.” She added that today’s announcement will do just that, with thousands of businesses across the country set to benefit.

SMEs will also be able to access loans of up to £2 million as part of the package.

The Chancellor also noted that Britain will continue to pursue a good bilateral economic agreement with the United States. In an article in the British newspaper The Observer, Reeves said she has no illusions about the difficulties that lie ahead.

While she does not directly criticize Trump or his policies, Reeves emphasizes that the effects will be economically devastating and insists on working to alleviate the justifiable insecurity related to the cost of living felt by British families.

Reeves explained that she will advocate at the International Monetary Fund meeting later this month for a new, more balanced global economic and trading system that recognizes the benefits of free trade over the blatant protectionist strategies employed by Trump in recent weeks. The British Chancellor rejected the protectionist ideas now being vigorously promoted by President Trump as his core economic policy, and supported the free trade alternative, adding: “The Labour Party is an internationalist party. We recognize the benefits of free and fair trade and cooperation. Now is not the time to turn our backs on the world.”