Zero tariffs coming? The UK announced: suspending tariffs on 89 products to cope with economic pressure, saving companies 17 million pounds a year. Trump again mentioned the exemption of automobile tariffs, causing market fluctuations

UK suspends tariffs on 89 products to ease pressure on businesses

In response to the impact of the US tariff policy on global trade, the British government announced on April 13 local time that it would suspend tariffs on 89 imported products from now until July 2027, covering pasta, juice, spices, plastic products and other commodities.

Taking fruit juice as an example, the previous tariff rate was between 14% and 30%, which will be reduced to zero during the suspension period.

The British government said the move is expected to save companies about 17 million pounds a year and may benefit consumers by lowering commodity prices. British Prime Minister Starmer recently said that he would take "all necessary measures" to protect British companies from trade conflicts, and suspending tariffs on a variety of products is part of these measures.

The decision is widely seen as a response by the UK to protect its domestic automotive industry after the Trump administration imposed a 25% tariff on imported cars.

Recently, the British stock market has rebounded after suffering a sharp drop. As of the close of the 14th, the UK FTSE 100 index rose 2.14% and returned to 8,000 points.

In addition, the UK will expand export financing support by 20 billion pounds, including special loans for companies affected by US tariffs, with small and medium-sized enterprises able to apply for up to 2 million pounds. The Daily Telegraph analyzed that this series of measures is aimed at reducing trade barriers while striving to reach a more favorable agreement with the United States.

US tariffs hit UK economy

Reuters reported on March 27 that former US President Trump's tariff policy has become a major threat to the British economy. The UK's Office for Budget Responsibility warned that if the United States imposes comprehensive tariffs, the size of the British economy, which is highly dependent on international trade, may shrink by 1%.

British Chancellor of the Exchequer Reeves has already faced criticism for tax increases and welfare cuts (affecting about 3.2 million households) in his October budget last year, and Trump's tariff policy has further exacerbated the UK's fiscal pressure. On April 14, the pound-dollar exchange rate broke through 1.32, hitting a new high since October last year, and the market responded positively to the adjustment of the UK's economic policy.

Trump's auto tariff exemption policy has repeatedly sparked controversy

On April 14, Trump said during a meeting with Salvadoran President Bukele that he was considering exempting U.S. automakers from tariffs on imported parts to help them switch to domestic production. Previously, the United States imposed a 25% tariff on imported cars, causing Audi and other automakers to suspend shipments to the United States, and many factories in the United Kingdom and Germany also took production cuts.

Trump said the auto industry needs time to adjust its supply chain, which was interpreted as a possible postponement of auto tariffs. Influenced by this news, automakers' stock prices rose that day. However, experts questioned the actual effect of the tax increase policy, believing that it would push up production costs and car prices, and could lead to layoffs and economic recession.

The UK's move to suspend tariffs and expand business support highlights the uncertainty of the global trade environment. The volatility of Trump's policies continues to disturb the international market, and companies need to pay close attention to subsequent developments.

This article integrates authoritative sources such as CCTV Finance, Reuters, and the Associated Press to ensure that the information is true and reliable.

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