Over the past year, the Labour government has been reshaping Britain’s trade policies, balancing post-Brexit realities with global economic pressures. A major focus has been improving EU trade ties, with Prime Minister Keir Starmer advocating for reduced border checks and closer economic cooperation. While a full return to the single market is off the table, Labour’s strategy aims to ease friction for British exporters.
However, global headwinds complicate this agenda. The re-election of Donald Trump has sparked new trade tensions, with the US imposing 25% tariffs on steel and aluminium. Labour ministers have scrambled to negotiate exemptions, keen to avoid retaliatory tariffs that could hurt British businesses. Meanwhile, UK trade with China remains a delicate issue, as Labour weighs economic opportunities against national security concerns.
Domestically, the government’s £8.3 billion investment in Great British Energy signals a shift towards self-sufficiency and green exports. Yet, critics argue Labour’s approach lacks urgency in tackling supply chain disruptions and boosting UK manufacturing.
With the EU deficit widening to €5.4 billion, Labour faces tough choices: double down on trade liberalisation, or protect domestic industries through strategic interventions.
The next year will test whether their policies can deliver both stability and growth!
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