3 days Ago
Donald Trump's new gilded economic age for the American people came and went, briefly sending every index into the dumpster. No stone was left unturned. Islands with little to no human life were slapped with double-digit tariffs.
All nations apart from Russia, of course. Although the reciprocal tariffs have been removed, the UK is still stuck with the same 10% rate. The UK did well to avoid a more significant duty rate on Liberation Day.
The initial tariff resulted in the FTSE 100 falling around 5% as lawmakers in Westminster scrambled to control the damage. The UK lacks any bilateral trade deal with the US, leaving it fully exposed to these new tariff layers with no exemptions. Key UK exports such as autos, aerospace parts, whisky, and pharmaceuticals now face punitive costs, with no sign of alleviation.
Trump's tariffs will be significantly detrimental to the UK economy, with the 25% duty on imported cars potentially putting 25,000 UK jobs at risk alone. In an attempt to stop the bleeding and appease Trump, Starmer is looking at axing the very minimal rate of tax the UK charges its tech companies and, in the process, sell the country's soul to Silicon Valley. Economists warn that the UK economy could suffer from the broader impacts of Trump's trade wars, even without direct tariffs, leading to potential spending cuts or tax increases in the autumn budget.
A gloomy spring statement didn't provide any consolation, given that these tariffs, if maintained for five years, could all but wipe out the fiscal headroom that Reeves desperately desires. Starmer rightly has the economy at the top of his mind. Yet cutting the Digital Services Tax (DST) simply doesn't make political sense for Sir Keir.
What is the Digital Services Tax The Digital Services Tax (DST) was introduced in 2020 as a stopgap measure to make tech companies not headquartered in the UK pay tax on revenue derived from UK consumers. Social media companies, online marketplaces, and search engines must..
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