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Liberation day Independence Day the
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greatest day in American history or the
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end of the global economic order and the
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start of a dangerous New World welcome
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to the week in business with me
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May in the end it was classic Trump
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sometimes reading from an auto que as if
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for the first time sometimes veering Off
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Script in erratic directions calling out
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supporters in the crowd bringing up
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oversized props to illustrate his
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thinking but behind the ransip and the
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rhetoric president Trump blew up a
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global trading system and an economic
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order that had been taken for granted as
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the best way of doing things since the
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end of the second world war in the
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process becoming the most protectionist
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US president in a 100 years from Friday
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night anything imported into the US from
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another country will be subject to a
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minimum 10% tariff attacks with many
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countries facing far higher rates EU
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countries will face a 20% Levy Asian
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countries including Vietnam which has
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become a manufacturing Powerhouse for
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clothes toys and electronics face truly
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crippling tariffs meaning that entire
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Supply chains are being totally upended
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Goods exported from Vietnam to the US
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will now face a tariff of 46% for Taiwan
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it's 32% 25% for South Korea Trump says
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the tariffs will raise trillions of
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dollars allowing him to deliver promised
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tax cuts for America he also says the
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move is aimed to secure uh American jobs
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protecting American manufacturers Ing
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and encouraging a wave of investment as
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firms build factories on us soil well
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that is the theory behind this plan but
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there's a theory behind communism too
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and what matters is how it plays out in
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practice countries around the world
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including the UK are now urgently trying
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to figure out a response while hammering
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away at their us counterparts in a bid
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to negotiate now Trump likes a deal but
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after the bombastic and at times
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shocking announcements of last night it
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seems unlikely that he'll start chipping
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away at his new economic order anytime
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soon so where does this leave the UK
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economy well the US has whacked 10%
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tariffs on exports from the UK to the us
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all of which will now apply to the 60
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billion pounds worth of goods that
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British firms ship across the Atlantic
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each year including of course cars where
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the US is our largest export market and
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they face a separate Levy of 25% so
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there will be a dramatic economic impact
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a tariff is a tax and taxes are all
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ultimately paid by people not businesses
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whether through higher prices or lower
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wages Trump's tariffs will be felt by
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people here in the UK and in the US and
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it's true that 10% is better than 20%
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slapped on EU countries chalk that up as
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a brexit win if you like but starmer is
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setting his hopes on a more
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comprehensive deal the talk of a US UK
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Trade Agreement being thrashed out we
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must all hope that the government gets
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such a deal over the line Lord mandon
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the UK Ambassador in Washington and
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Downing Street officials know that the
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stakes could not be higher Trump has
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swung a wrecking ball through the
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Chancellor's spring statement her fiscal
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hrum and the obr's economic growth
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forecasts numbers that were frankly
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shaky last week have crumbled today the
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National Institute for economic and
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social research claimed yesterday that
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if 10% tariffs were imposed on UK Goods
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what they called a worst case scenario
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economic growth in the UK would tumble
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to just over half a percent this year
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before evaporating entirely in
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2026 you heard that right some
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economists are now expecting 0% growth
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in the UK economy in 2026 unless that is
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St can negotiate better terms bespoke
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terms the problem is that the UK economy
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is vulnerable to both the primary impact
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the tariffs levied and the secondary
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impacts of reduced global trade slower
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global economic growth a slump in
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business confidence and the likely
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inflationary impact of all of this new
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friction in global trade even if starma
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carves out a deal for the UK will not
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insulate us from wider consequences
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Trump has carved up the world and the
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world needs to decide how it responds in
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the immediate and longer term It's
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Different Strokes for different folks
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the EU is expected to retaliate while
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Australia has said it won't hit back
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rejecting what it called a race to the
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bottom good on you Australia Trump sees
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himself as master of all he surveys but
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if there is a winner from this
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breathtaking Act of economic vandalism
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it will probably be China with Global
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Supply chains and Manufacturing
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operations being fundamentally
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reprogrammed in the months and years
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ahead China stands to benefit enormously
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from America's new protection mindset
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and that cannot be what Trump had in
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mind when he hailed the dawn of a great
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golden age for America Global markets
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are reacting to this new reality as we
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speak and they'll react again when
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countries and territories announce their
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response all eyes are on the eu's
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position which is set to emerge over the
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course of the next 24 hours so all I can
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say is strap in and stay with us at
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cam.com and through the cam app As Trump
