The UK is set to “indirectly benefit” from Donald Trump’s new trade tariffs on Canada, China and Mexico, according to leading economist Julian Jessop.
Speaking to GB News, Jessop said the US President views Britain as ‘too small a country’ to be concerned about.
“We’re frankly too small a country for Trump to be that worried about,” Jessop explained.
The newly inaugurated US President announced 25 per cent tariffs on Mexican and Canadian goods, alongside a 10 percent levy on Canadian oil and Chinese imports.
Economist Julian Jessop has predicted the UK will ‘indirectly benefit’ from Donald Trump’s trade war
GB News / Reuters
The economist noted that Britain’s position was strengthened by current trade patterns, saying: “The US actually runs a small surplus in trade in goods with the UK. So we’re not an obvious target.”
Jessop outlined several potential benefits for Britain from Trump’s trade measures. UK companies might find it easier to compete in the US market when other nations face tariffs, he suggested.
British consumers could also gain unexpected advantages, with Chinese firms potentially redirecting cheaper goods to the UK market.
“Some UK companies might find it easier to compete in the US if imports from other countries are being charged tariffs,” Jessop told GB News.
Donald Trump has imposed new tariffs on China, Canada and Mexico
Reuters
“Some UK consumers may also benefit because Chinese companies, for example, might want to divert cheap goods to the UK rather than try and sell them into the US,” he added.
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Despite potential benefits, Jessop warned of significant negative impacts from Trump’s trade measures.
“The US tariffs are probably going to tip the Canadian and Mexican economies into recession,” he cautioned.
He highlighted particular concerns for major European economies, noting the tariffs would “add to the headwinds to countries like Germany, France and Italy.”
The measures could also affect UK borrowing costs, Jessop explained. “They’re also likely to mean that US interest rates are higher for longer than they would otherwise have been. And that means that borrowing costs are probably going to be higher here as well for a longer period, too.”
Jessop told GB News that the tariffs could put Canada and Mexico ‘into recession’
GB News
Despite concerns over Trump’s trade approach, Jessop expressed optimism about UK-US relations.
“President Trump is not obeying the usual rules of international trade. You’re not supposed to do what he is doing,” he said.
However, the economist suggested Trump’s personal connections could benefit Britain. “Being cynical, there are quite good reasons to expect President Trump to be positive about the UK. His family links with Scotland, his affection for the for the Royal Family,” Jessop explained.
He believes these factors could lead to preferential treatment for Britain. “I think independently the economics, we will almost certainly get a better deal than we would otherwise have done if we weren’t who we are,” he said.
“He does, after all, like doing deals and a small deal with the UK, not a big threat to the US, but I think it will play quite well with him.”