Britain expands business support through 'new era' of trade
Photo: London increases aid to national businesses due to US tariffs (Getty Images)
Against the backdrop of US tariffs, the UK government is expanding financial support for exporters by billions of pounds, according to Reuters.
The UK government has announced plans to increase financial assistance for national exporters by £20 billion (26 billion US dollars).
The decision aims to provide stability and predictability for businesses amid what the UK government has described as a “new era of global trade.” The support is intended, in particular, for companies affected by the tariffs imposed by the US.
According to a government statement, the total volume of credit guarantees available through the UK’s state agency, UK Export Finance (UKEF), will be increased to £80 billion. Of this amount, up to £10 billion is allocated to provide short-term support to businesses most affected by the US tariff policy.
“The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead. Today’s announcement will do that just, with thousands of businesses right across the country set to benefit,” said UK Chancellor Rachel Reeves.
Under the new package, small and medium-sized enterprises will also gain access to concessional loans of up to £2 million.
US import tariffs
The United States, at the initiative of President Donald Trump, imposed import tariffs of 25% on steel, aluminum, and automobiles, along with a base rate of 10% on most other goods, including those from the United Kingdom.
The decision significantly increased uncertainty for British companies regarding the terms of their participation in the new trade environment. London warned of the risk of a global economic crisis.
Later, Trump suspended the additional tariffs for 90 days for more than 75 countries that had requested negotiations with the US. During this period, a flat 10% tariff rate was set for those nations.
