Former Prime Minister Tony Blair is advising the UK government against retaliating to President Trump’s newly implemented 10% tariff on British goods, suggesting restraint would better serve national interests. Speaking to students at King’s College London, Blair expressed uncertainty about future developments in the ongoing tariff situation but praised the Starmer administration’s measured response to Trump’s “Liberation Day” levies, The Independent reported Friday.
The trade measures have hit the UK despite its favorable trade relationship with the United States, which saw an $11.9 billion surplus in America’s favor last year, according to the US Trade Representative’s office. In a surprising twist, Trump asserted that Prime Minister Starmer welcomed the new tariffs, contradicting statements from Foreign Secretary David Lammy, who expressed significant concerns about America’s apparent shift toward protectionist policies. Earlier this year, Trump had indicated interest in developing a tariff-free trade relationship with Britain, discussing the possibility of “a real trade deal” that would eliminate the need for such measures.
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The White House justified the baseline 10% tariff as a strategic move to prevent circumvention of higher “reciprocal” tariffs imposed on other trading partners, including a 20% rate for EU member states. These reciprocal tariffs were calculated based on trade deficits, with administration officials explaining that the imbalances represented the cumulative effect of unfair trading practices and “cheating.” The international response has varied significantly. Vietnam’s Communist Party leader To Lam reached out to Trump, promising to eliminate their tariffs completely to avoid a proposed 46% rate.
In contrast, China responded with retaliatory measures after being hit with a 34% tariff. Market observers criticizing Trump’s approach, which triggered significant stock market declines, argue that the reciprocal tariff formula fails to account for natural economic advantages certain countries possess, whether through lower labor costs, natural resources, or agricultural conditions. The new policy has particularly impacted specialized export economies.
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Madagascar, known for vanilla production, now faces a 47% tariff, while oil-exporting nations Iraq and Guyana confront rates of 39% and 38% respectively. The measures have also severely affected countries reliant on textile and clothing exports, with Bangladesh, Mauritius, and Sri Lanka facing tariffs of 37%, 40%, and 44% respectively, contributing to a decline in U.S. retail stocks.
