Last night, several office lights in Westminster remained illuminated well into the late hours.
The reason? Ministers and officials, along with many others, tuned in to hear from President Trump, including Business Secretary Jonathan Reynolds.
The president waved around a large rectangular card detailing new tariff hikes, sending ripples of concern through factories, boardrooms, and government offices globally.
UK officials had sensed the prevailing mood – a belief that the UK was in the “good camp,” as one person relayed – but they were uncertain about the specifics of its implications.
Now, we have a clearer understanding of those implications.
While there is a palpable sense of relief among ministers, they are far from overjoyed – the tariffs implemented on the UK will have serious repercussions, and those on the UK’s trading partners will deeply affect jobs, industries, and global trade flows in the upcoming weeks, months, and years.
One government insider described the situation as “hugely disruptive.”
There is heightened concern specifically regarding the automotive sector.
Discussions regarding a trade deal with America are ongoing.
I have been informed that a team of four UK negotiators is engaged in “pretty intensive” dialogue with their American counterparts – communicating remotely but ready to travel to Washington if a deal seems on the verge of completion.
Let’s wait and see.
The UK team describes the negotiations as “more akin to a corporate discussion than a trade negotiation,” attributing this to the characters, perspectives, and backgrounds of many within the Trump administration.
Another focal point in Westminster, particularly among Conservative members, is the contrast in treatment between the UK and the European Union – with many highlighting it as a benefit of Brexit.
Conversely, the Liberal Democrats advocate for the UK to collaborate with Commonwealth and European allies to challenge President Trump and impose retaliatory tariffs “if deemed necessary.”
On Thursday, Prime Minister Sir Keir Starmer will meet with businesses impacted by these changes, while the business secretary will address the Commons.
The next phase of this economic transformation is about to unfold, shaped by global reactions, both in words and actions.
These reactions will significantly influence the landscape.
The decisions on whether, how, and when to respond will carry economic and political ramifications both domestically and internationally.
The narrative surrounding Donald Trump’s tariffs is just beginning to take shape.
