UK economy could be especially at risk from Trump’s tariff war, says minister
The UK government is worried a “tariff war” between the US and other countries could lead to higher inflation and unemployment, the trade secretary has said.Jonathan Reynolds, the business and trade secretary, warned the UK was particularly vulnerable to the impact of US tariffs because it was a “very globally oriented economy” reliant on international trade and investment.During his election campaign, Donald Trump pledged to introduce a blanket 20% tax on all foreign goods to protect domestic industries, despite warnings that such a move would fuel US inflation.British ministers are hoping that despite his pledge, Trump, who will be inaugurated as president on Monday, will introduce more limited tariffs focusing on particular sectors and countries, which could spare the UK.Earlier, Trump refuted a report that his team was exploring tariff plans that would only cover critical imports.
Asked if he was worried about a tariff war, with countries responding to new US tariffs by introducing their own, Reynolds said: “I am, because the UK is a very globally oriented economy so the exposure, the danger to the UK is actually greater than even some comparable countries.”However, he argued that Trump was motivated by the US trade deficits with China and the EU, and that the UK was “in a different position”.He told Sky News: “We’re well prepared for this, we’ve got a good argument to make, and I think there is a chance, actually if we play this right, to get an even better relationship out of some of these things that have been put forward.But we can’t be complacent – and there are risks, yes, of a tariff war.”Reynolds warned that tariffs could lead to higher inflation and unemployment.
“Tariffs are paid by your own people,It’s got real pressures in terms of your inflation, in terms of your ability to employ people, to export to other markets,” he said,He stressed the UK government had made extensive preparations for tariffs and had been “engaging early with the new administration” in the US,Keir Starmer has appointed Peter Mandelson, the New Labour-era business secretary and EU trade commissioner, as Britain’s ambassador to Washington and tasked him with negotiating better trade terms with the US,Reynolds said Trump’s administration was “going to be a challenging time for anyone that’s responsible for trade in a big economy because of some of those pledges that were made during the campaign”.
However, he said there were also opportunities including the prospect of working more closely with the US on technology and digital trade in the services sector,“If there’s an offer from the US to talk about how we can collaborate closer together on that of course we’ll take a look,” he told Sky News,He argued that the UK was well-positioned to become a close trading partner to the US, the EU and emerging markets including India, China and the Gulf states,Asked about the Liberal Democrats’ call for the UK to rejoin the EU customs union, Reynolds told BBC Breakfast: “The problem to be frank for the Lib Dems is they only ever think about Europe,“Of course it’s a major market, but this is a government that wants to improve that relationship with the EU but also wants to do work with the US, with India, with the Gulf.
I think the UK could be positioned as the best economy between those major trading blocs.”
Bank of England delays rules designed to avoid banking crash by a year
The Bank of England will further delay capital rules meant to prevent another 2008-style crash, as it weighs the impact of Donald Trump’s return to the White House and the chancellor Rachel Reeves’s call for regulators to help drive UK growth.The Bank’s regulatory arm said it was delaying the date by which banks had to implement Basel 3.1 rules by a year, to January 2027.The Bank’s regulator, the Prudential Regulation Authority (PRA), said it made the decision after consulting with the Treasury, and that it had taken “competitive and growth considerations” into account.It marks the third delay by the central bank, which is buying time to see how far the Trump administration will go in watering down regulations
IMF upgrades UK growth forecast and takes swipe at Trump plans
The International Monetary Fund has upgraded its forecast for UK growth this year in an update to its biannual assessment of the global economy, while taking a swipe at plans by Donald Trump’s incoming US administration for the potentially destabilising effect of large-scale tax cuts, import tariffs and weaker regulations.In a fillip to the Labour government, the Washington-based organisation said it expected the UK economy to grow by 1.6% in 2025, up from an earlier forecast of 1.5%.The IMF judged that Labour’s increase in investment spending, improved household finances and a series of interest rate cuts by the Bank of England would give the UK economy a lift this year
Can Donald Trump circumvent a TikTok ban?
As the app is on the brink of being expelled, the president-elect has been working to make good on his pledge to save itIn the run-up to the election, Donald Trump made a plea to his followers. “FOR ALL THOSE THAT WANT TO SAVE TIK TOK IN AMERICA, VOTE TRUMP!” he posted to his Truth Social account in September. Since then, he’s been working to make good on that pledge.He hosted TikTok’s CEO, Shou Chew, at his Mar-a-Lago estate in December, implored the US supreme court to delay a TikTok ban and he’s now reportedly considering an executive order to postpone the app’s disappearance. Chew is slated to join Trump at his inauguration in what appears to be a show of solidarity with the embattled executive
Russian hackers target WhatsApp accounts of ministers worldwide
Russian state-linked hackers have targeted the WhatsApp accounts of government ministers and officials around the world with emails inviting them to join user groups on the messaging app.The WhatsApp tactic marks a new approach by a hacking unit called Star Blizzard. Britain’s National Cyber Security Centre (NCSC) has linked Star Blizzard to Russia’s domestic spy agency, the FSB, and has accused it of seeking to “undermine trust in politics in the UK and likeminded states”.According to a blogpost by Microsoft, victims receive an email from an attacker impersonating a US government official, enticing the recipient to click on a QR code that gives the attacker access to their WhatsApp account. The code, instead of giving access to a WhatsApp group, connects an account to a linked device or the WhatsApp Web portal
Draper delighted hard work paying off after hat-trick of Melbourne marathons
Jack Draper says his trio of five-set victories at the Australian Open are evidence of the hard work he has put into his career, effort that is finally paying off for him in the biggest matches.“I still have a long way to go, but this is a huge drive forward, the fact that I’ve come through three five-set matches, mentally and physically, it doesn’t happen often,” said Draper. “That’s a testament to the work I’ve done and the place I’m in. So very, very proud of that.”At 12:55am on Saturday morning in Melbourne, Draper, the 15th seed, closed out his third five-set win in as many matches to reach the fourth round with a 6-4, 2-6, 5-7, 7-6 (5), 7-6 (8) victory over Aleksandar Vukic of Australia
Windsor embraces return of jumps racing with cash at the Million festival
When Windsor staged what was billed as its last ever jumps meeting in December 1998, the final race on the card was the Norwegian Blue Handicap Hurdle – a clear sign that as far as the track was concerned, jumping was no more. It had ceased to be.A generation later, though, it is suddenly showing distinct signs of life. There were just under 5,000 racegoers at Windsor last month for the first officially scheduled jumps meeting for 26 years, and the queues at the turnstiles on Friday – the first of two days as part of the first Berkshire Million festival, with the Clarence House Chase card at Ascot as the meat in the sandwich – suggested plenty of those fans had come back for more.There was a total of £18,299 in win prize money on offer for the seven races in 1998
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