Last week, Donald Trump said he believed the U.S. and UK could reach a trade deal without tariffs. However, just days later, he warned that Britain could face trade tariffs after all.
On Monday, Trump discussed trade agreements while announcing a 25% tariff on Canada and Mexico. He then mentioned the UK, saying, “We’re looking at the UK with things. It doesn’t have to be tariffs, but tariffs are easy, fast, and efficient.”
Trump made these comments during a speech at the White House about new investments in the U.S. chip industry. He has previously criticized European taxes, such as VAT, which he sees as unfair trade barriers.
His remarks caused stock markets to drop, with the S&P 500 falling by 1.8% on Monday. He also announced a 10% tariff on China, citing concerns about fentanyl coming into the U.S.
Last week, after meeting with UK Prime Minister Keir Starmer, Trump had suggested that trade talks between the U.S. and Britain were going well. He criticized the European Union for being tough on trade and praised Brexit, saying a deal between the U.S. and UK could happen quickly.
“We’re going to have a great trade agreement for both countries,” Trump said at the time. Starmer also expressed optimism, saying he and Trump would work on a new economic deal focused on advanced technology.
Despite these positive remarks, Trump is now pushing for “reciprocal tariffs” worldwide, set to start on April 2. He joked that he avoided April 1 to prevent it from being seen as an April Fool’s prank.
