Bloomberg News Agency said on Friday that US President Donald Trump’s recent plan to impose customs duties on US imports on the basis of sales taxes in the country of the original country, the British economic product can incur 16 billion pounds (20 billion dollars) over the next two years, in what is considered A blow to British Prime Minister Kiir Starmer, who pledged to launch the country’s growth wheel.
Last Thursday, Trump ordered senior officials in charge of the economy to calculate the fees imposed on American imports for each country separately regarding customs fees, taxes, currency and other barriers facing American companies during their attempts to export to those markets.
Trump pointed to the problem of imposing value -added tax on sales in the European Union, while Britain also imposes value -added tax on imports by 20%.
At a time when economists in the United Kingdom said that it is unlikely that such a comprehensive group of fees are imposed, due to its potential impact on the American economy, it increases the risks to a severe blow to the United Kingdom at a time when Treasury Minister Rachel Reeves is under pressure Enhancing growth in order to achieve the tax revenues needed by the government of the Labor Party that took over the country’s leadership 7 months ago to advance British services.
If the United States imposes 20% fees on imports from the United Kingdom, this may lead to a decrease in economic growth in Britain to 1% on average over the next two years from 1.25%, according to the worst scenario accounts from Bloomberg Economics.
Perhaps the impact is slightly higher: If the United States imposes fees based on customs tariffs and value -added tax in the United Kingdom combined, then British exporters to the United States will face 21 % fees, according to analysts in Deutsche Bank. The bank’s analysis showed that this would put Britain behind countries like the European Union by 22%, Argentina by 29%, and India with 33%.
Paul Dels, the chief British economist in Capital Economics, said Britain “is doing what it can to stay away from the fire line and satisfy Trump.” It was less pessimistic about the potential impact of US definitions on the British economy – as the impact on the gross domestic product of 20 % duties could be more than 0.2 % slightly.
