US ally declares the era of globalization is over due to new tariffs
A British politician has declared that the era of globalization has "ended" following the implementation of a series of tariffs by U.S. President Donald Trump this week.
Why It Matters
The Trump administration has imposed heavy tariffs on many of its key trading partners, claiming they will boost the U.S. economy, but these measures risk escalating into a harsh trade war that has already caused turmoil in global markets, News.Az informs via Miami Herald.
What To Know
Darren Jones, a member of U.K. Prime Minister Sir Keir Starmer's Labour Party serving as the chief secretary to the treasury, told the BBC on Sunday that "globalization as we've known it for the last couple of decades has come to an end."
Globalization as a term refers to the close ties between different countries, including trade links.
Starmer said in an opinion piece published by Britain's The Sunday Telegraph this weekend that "the world as we knew it has gone." "We already have a balanced trading relationship with our American allies and work continues on a new economic prosperity deal," Starmer said. The U.K. has been trying to negotiate a trade deal with the U.S. for months.
"Nonetheless, all options remain on the table," the prime minister added. The Trump administration placed a 10-percent baseline tariff on the U.K. as part of the "reciprocal" tariffs unveiled on Wednesday.
Trump dubbed it "Liberation Day," targeting tens of countries, including some uninhabited territory, with varying taxes. A 25-percent global tariff on cars and other products like steel also applies to the U.K.
"No country was able to secure an exemption from these announcements, but the U.K. did receive the lowest reciprocal tariff rate globally," British Business and Trade Secretary, Jonathan Reynolds, told British lawmakers on Thursday.
He said the government would speak with British businesses in the coming weeks as the U.K. formulates its response to the new charges.
The European Union was hit with a 20-percent levy under the "reciprocal" tariffs, and is impacted by the broader 25-percent tariff on cars, steel and aluminum.
European Commission Chief Ursula von der Leyen said the bloc was "prepared to respond" to the tariffs that have been broadly condemned by national leaders across the continent.
China—which received a 34-percent tariff under the new taxes on top of an existing 20-percent—responded by announcing its own additional, retaliatory 34-percent levy on U.S. imports. It will take effect on April 10.
What Happens Next
It is not yet clear how many of the countries singled out for tariffs will respond, and whether the U.K. will be able to secure a rollback in fresh taxes.
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