Tariff War: The UK Moves to Support Exporters as the U.S. Eases Pressure on Consumers

Amid growing global trade tensions, the UK counters U.S. tariffs with a historic support package,
while Washington exempts phones and computers to reduce domestic pressure.

Contents

United Kingdom

Washington

Coffee

United Kingdom

Boosts Export Support with £20 Billion to Counter U.S. Tariffs

The United Kingdom announced on Sunday an increase in financial support for exporters,
allocating £20 billion (approximately $26 billion) to provide stability for businesses impacted by U.S. tariffs,
in what the government described as a new era for global trade.

This step follows the tariffs imposed by U.S. President Donald Trump,
which included a 25% duty on steel, aluminum, and cars, and a 10% tariff on most other imports from countries like the UK,
exacerbating uncertainty for British companies.

Under the new plan, the lending capacity of UK Export Finance will rise to £80 billion,
with £10 billion earmarked specifically to support the most affected companies in the near term.

Finance Minister Rachel Reeves stated:
“The world is changing, and now more than ever, it’s important to support our world-leading companies to help them overcome upcoming challenges.”
She added:
“Today’s announcement will provide tangible support for thousands of businesses across the country.”

The government also clarified that small and medium-sized enterprises will be eligible for loans of up to £2 million as part of the support package.

Washington

Exempts Phones and Computers from Tariffs to Ease Pressure on Consumers

Amid the ongoing trade war with China, the United States announced an exemption for smartphones and computers from the additional tariffs imposed by President Donald Trump—a move aimed at easing the burden on American consumers.

The exemptions, detailed in a notice issued by U.S. Customs and Border Protection on Friday evening,
included a range of electronics from China that had previously faced additional tariffs of up to 145%.
This comes as the U.S. continues to exclude semiconductors from these tariffs and maintains a general 10% exemption for most trade partners.

The new exemptions narrow the scope of Trump’s earlier 10% general tariff announced earlier this month,
as well as the punitive tariffs targeting Chinese imports specifically.

The Trump administration continues to impose reciprocal tariffs on China in response to what Washington deems unfair trade practices.
The most recent move saw a new 125% tariff on Chinese goods, which came into effect recently,
adding to a prior 20% tariff imposed due to accusations involving the fentanyl drug supply chain.
With old and new tariffs combined, many products now face duties of 145% or more.

Many of the exempted items, such as hard drives and computer processors,
are not typically manufactured in the U.S. While Trump has insisted that the tariffs aim to revive domestic manufacturing,
experts believe achieving that goal could take several years.

Coffee

Warnings of Record-High Coffee Prices in the U.S. Due to Tariffs

Food commodity experts have warned that coffee prices in the United States are heading toward unprecedented levels
due to rising import tariffs and soaring global coffee prices,
as the country is entirely dependent on imports due to its unsuitable climate for coffee cultivation.

President Donald Trump surprised markets by imposing a new 10% tariff on coffee imports,
even after previously reversing a 46% reciprocal tariff on Vietnam, one of the top coffee exporters.
However, the new tariff remains in place,
leading to a direct 10% increase in import costs—just as Arabica coffee prices soared past $4 per pound in February,
the highest level in history.

Tariff War: The UK Moves to Support Exporters as the U.S. Eases Pressure on Consumers

Tariff War: The UK Moves to Support Exporters as the U.S. Eases

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