I'm not exactly sure how effective this will be but at least the UK gov't is thinking ahead and looking at options. Once Trump weaponised tariffs to force compliance to his narrative from the rest of the world, that genie isn't going back inside the box.
Ministers are drawing up sanction powers to retaliate against economic pressure after Trump threatened the US-UK trade deal
Ministers are preparing to create a trade “bazooka” that will allow Britain to retaliate against potential “economic coercion” from the United States or China.
Under plans being drawn up by Peter Kyle, the trade secretary, ministers could impose wide-ranging trade sanctions to counter “adverse economic pressure” brought by other countries.
The tactic is inspired by the European Union’s anti-coercion instrument, nicknamed the “trade bazooka”, that came into force three years ago. It allows the bloc to impose extensive sanctions such as excluding the aggressor’s companies from the EU market, implementing export controls or ending intellectual property protections.
The instrument was seen as one of the factors that forced President Trump to back down on plans to impose 10 per cent tariffs on EU goods at the height of the row over Greenland.
Businesses and trade experts have been asked to share ideas for the measures with the government, which could include restrictions on the export or import of certain goods, services or investment to or from any coercive state.
The Department for Business and Trade said action could be taken in the “same or in a different area of the economy to that being targeted by an act of adverse economic pressure”. It would have the “aim of resolving the situation swiftly and effectively”.
This week Trump threatened that the US-UK trade deal “can always be changed” as he once again criticised a perceived lack of support by the government over his war in Iran. The president told Sky News: “We gave them a good trade deal, better than I had to.”
Trump’s Treasury secretary, Scott Bessent, also signalled a return to trade tariffs being “back in place at the previous level” by July after previously being struck down by the Supreme Court.
Bessent said on Tuesday: “We had a setback at the Supreme Court in terms of the tariff policy but we will be implementing or conducting section 301 studies so the tariffs could be back in place at the previous level by the beginning of July.”
The Times 16.04.26