Labour Home Secretary Yvette Cooper has warned that President Donald Trump’s new tariffs on neighbouring countries could have a “really damaging impact” on the global economy.
Speaking on BBC’s Sunday with Laura Kuenssberg, Cooper became the first senior British Government figure to respond to Trump’s announcement of new trade penalties on Mexico, Canada and China.
The measures have sparked concerns about potential trade wars across the globe as the US moves to impose significant levies on its biggest trading partners, which the vast majority of analysts claim will be a tax on consumers.
Yesterday, the US President introduced a 25 per cent levy on goods from Mexico and Canada, alongside a 10 per cent trade tax on Chinese imports, set to take effect on Tuesday.
According to Trump, these tariffs are aimed at pressuring these nations to increase their efforts in preventing illegal migration into America and controlling the flow of fentanyl.
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Trump tariffs could have “really damaging impact” on global economy, Labour minister warns
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Critics have warned the new trade penalties could fuel inflation in the US economy, leading to higher prices for consumers. Canada and Mexico, the US’s largest trading partners, have vowed to implement retaliatory tariffs on American goods in response to the new measures.
The international pushback comes as concerns mount about the broader economic implications of these trade restrictions. The UK Government has distanced itself from this approach, with Cooper telling the BBC that “tariff increases really right across the world can have a really damaging impact on global growth and trade”.
Cooper emphasised that the UK’s approach stands in stark contrast to new US trade barriers, stating Britain’s focus is “on building trade links and better trading relationships.”
She told the BBC that the UK aims to remove barriers to trade with the US, European countries and nations worldwide. “We want to reduce the barriers to trade, make it easier for businesses,” the Home Secretary added.
Ministers have expressed confidence that the US is unlikely to impose tariffs on the UK, citing the absence of a trade deficit between the two nations. Political responses to the potential trade threat have varied significantly across party lines.
The Liberal Democrats have advocated for the UK to establish a customs union with the EU ahead of the Trump White House imposing any tariffs on UK trade in the future.
Meanwhile, Conservative Shadow Business Secretary Andrew Griffith urged Sir Keir Starmer to pursue closer US trade ties, suggesting the Prime Minister should redirect his flight from Belgium to Washington DC.
Prime Minister Keir Starmer has maintained that Britain does not need to choose between closer ties with Europe or the United States with Trump claiming the Labour leader is “doing a good job”.
Professor Joe Nellis, an economic advisor at accountancy firm, previously gave a prediction of what Trump’s tariff agenda could mean for global trade in the years to come.
He explained: “A blanket imposition of protectionist tariffs would also re-shape trade relationships around the globe. A unipolar international system with the US at its heart has been the norm since the demise and eventual collapse of the Soviet Union at the turn of the 1990s, but this appears to be coming under threat with the rise of China.
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“An isolationist and tariff-hiking US could further accelerate the move towards a bipolar system with the Chinese sphere of influence gaining momentum. With tariffs set to hit Chinese imports hard, General Secretary Xi Jinping will be looking elsewhere for trade opportunities.
“Only recently, UK Chancellor Rachel Reeves travelled to China on an exploratory trip to discuss improving economic relations between the two countries.
“Equally, a tense political and economic relationship between the US and EU could tempt a shift in allegiances towards the East Asian powerhouse, despite notable political and cultural differences.
“Could this potentially transformational pivot in US trade policy lead to a realignment in the long-standing geopolitical system?Perhaps more importantly, would the US care if they let their traditional allies drift away if their own economy is booming and self-sufficient?”
