Two different strategies. While the British administration, directed by Keir Starmer, quickly signed an agreement with the United States to limit breakage against customs tasks shown by Donald Trump, the EU is still trying to negotiate, but the discussions fail at the moment.
London has obtained an advantageous customs level in steel and aluminum: 25% against 50% in the long term for the 27.
Therefore, the United Kingdom could recover competitiveness, according to analysts.
“If the customs duties rate for the EU ends up approaching 30%, the tasks of US much lower customs applied to the United Kingdom would be an important incentive for EU companies to transfer part of their production to the United Kingdom or expand their existing facilities in the United Kingdom,” he adds.
London experienced an economic period concerned with Brexit: if the EU departure has allowed him to recover control of a series of prerogatives, starting with immigration, since the country has even signed agreements controversial with France: its GDP has stagnated and has dated 5 points lower than it would have been without Brexit, according to studies.
Worse, Europe is still its first commercial partner: the strategic pivot began towards the United States has not begun. In 2024, the block was, therefore, the first British interlocutor, with 51.7% of the assets exchanged by the country (combined imports and exports), according to European data.
The industry is a long time
The United Kingdom has also been reached in its foundations, especially in the financial field. The lobbies of the sector evoke 440 relocations between 2016 and 2021 and long -term effects, with companies such as Goldman Sachs repatriating their activities in the continent. More recent studies indicate for their side that the effects have been limited although real, and that the effects of network and cluster have maintained the density of the sector in London.
The good health of finance reflects the reality of the British economy: its strengths are not export sectors or subject to the threat of customs duties, unlike Italy or Germany, whose industrial fabrics are excessively fragile before an increase in US “tariffs.”
Therefore, an uncertainty: the United Kingdom could benefit from commercial repatriations and take advantage of the opportunity to diversify; But these relocations in Europe will only be carried out if companies consider that the local industry is competitive. However, British industrial capabilities are fallow.
The industry also requires long -term investments to be amortized. “The effects would only be seen on a horizon of several years, even several decades,” he explains. Much later, certainly, Donald Trump’s departure from the White House.
Source: BFM TV
