UK Warns U.S.-EU Trade Spat Sparks Global Economic Disruption
(MENAFN) A large-scale trade conflict between the United States and the European Union could severely disrupt the worldwide economy and would almost certainly have repercussions for the United Kingdom, a top UK trade specialist has cautioned.
In a discussion with a media outlet, William Bain, the head of trade policy at the British Chambers of Commerce, noted that Britain's current trade deals would offer only limited shielding from the fallout of escalating tensions between Washington and Brussels.
“An escalation of the trade dispute between the U.S. and EU would damage the global economy,” Bain emphasized. “The effects will be felt in the UK too, notwithstanding our own agreement with the U.S. on tariff reductions in key sectors.”
Bain’s alert comes amid mounting anxiety across Europe after U.S. President Donald Trump threatened to implement a steep 50% tariff on EU imports starting June 1—a sharp intensification of already fraught transatlantic trade relations. After a conversation with European Commission President Ursula von der Leyen, Trump agreed to delay the tariff increase until July 9 to provide more time for negotiation.
Despite this temporary pause, Bain warned that the core disputes remain unresolved. Numerous UK companies that distribute EU-produced goods to the U.S. or depend on EU components within their supply chains are now facing increasing uncertainty.
In Northern Ireland, where businesses operate under post-Brexit arrangements that align with certain EU regulations, the impact could be felt more immediately, Bain explained. He also questioned how effective contingency programs like the Duty Reimbursement Scheme will prove.
Bain attributed the stalemate in negotiations largely to the U.S.’s push to reduce its trade deficit with the EU, alongside American objections to digital services taxes and pharmaceutical pricing policies in several EU countries.
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