UK may limit China dealings to tackle Trump's tariffs

US aims to prevent China from bypassing trade barriers

Britain could be compelled to restrict interactions with China in order to secure reductions in Donald Trump's harsh tariffs. The White House is determined to prevent the Communist state from circumventing trade barriers by routing goods through other nations. This move by Trump's administration could also have a significant impact on Beijing's economy, as it aims to prevent China from flooding up to 70 trading partner countries with its products.

Trade tensions escalate with hefty mark-ups

The US has imposed mark-ups as high as 145% on Chinese imports, prompting China to retaliate with its own 125% surcharges. The World Trade Organisation has warned that this trade dispute could lead to a drastic 90% reduction in business between the two economic powerhouses, causing a forecasted dip of 0.2% in international trade growth.

UK negotiating trade deal to counter tariffs

As the UK navigates through negotiations to mitigate Trump's ten per cent tariffs and a biting 25% levy on cars, steel, and aluminium, concerns have been raised by MPs and campaigners about growing closer to China. They highlight the emergency legislation required to rescue British Steel, owned by Chinese firm Jingye, as a cautionary tale.

Warnings against cozying up to China

Tory MP Neil O'Brien cautioned, stating, "The UK and other democratic countries should aim to reduce dependence on a hostile authoritarian regime." Luke de Pulford from the Inter-Parliamentary Alliance on China added, "China's ability to undercut foreign industries is partly due to mass state-imposed forced labor practices."

Meanwhile, in a separate event, President Trump was seen posing with a match ball after awarding a trophy to a US navy team that emerged victorious in an armed forces gridiron tournament, receiving a gold ceremonial paperweight ring in return.