Britain announced on Sunday that it will expand financing support for exporters, including those impacted by US tariffs, aiming to provide greater stability and certainty in what it called a new era of global trade.

The government said the move boosts UK Export Finance’s (UKEF) lending capacity to £80 billion, with £26 billion in new support, including up to £10 billion specifically reserved to assist those most impacted by the tariffs in the near term.

"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," Minister of Finance Rachel Reeves stated, adding that "Today's announcement will do that just, with thousands of businesses right across the country set to benefit."

As part of the package, small and medium-sized businesses will be eligible for loans of up to £2 million.

Previously, Starmer reaffirmed his commitment to securing a trade deal with the United States to ease the impact of the tariffs while indicating that direct state intervention could be required to protect the national interest, in an article for The Sunday Telegraph published on April 6.

Related News

US seeking stronger energy partnership with India: US energy chief

EU to resist US push for tariffs on India, China over Russian oil

"Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided," Starmer stated, adding that "we simply cannot cling on to old sentiments when the world is turning this fast."

Britain's PM pledged to "turbocharge plans that will improve our domestic competitiveness, so we're less exposed to these kinds of global shocks," and did not rule out tax increases in autumn, noting that the government had refrained from implementing such a measure in its Spring Statement.

The Financial Times reported that UK wealth managers have seen a sharp rise in inquiries from US-based investors worried about the actions of Donald Trump and his administration, with many looking to shift their wealth from the US to the UK as uncertainty grows.

This comes as the latest tariffs implemented by the Trump administration hit the global economy, upending the system and taking the world toward uncertainty.

Tariff Turmoil

On April 2, Trump signed an executive order imposing so-called "reciprocal" tariffs on foreign imports. While the baseline rate was set at 10%, countries like China were disproportionately targeted, with cumulative tariffs on Chinese goods surging to 145%. These escalations were made under the guise of promoting fairness, yet few concrete demands were communicated, leaving trading partners uncertain and global markets rattled.

Back in the US, the economic consequences are beginning to surface. Manufacturers and importers have warned that the rising costs are unsustainable. Rick Woldenberg, CEO of Learning Resources, said his company's annual tariff expenses could rise from $2.3 million to over $100 million. Meanwhile, Florida-based business owner Emily Ley has filed a lawsuit against the administration, citing nearly $1.2 million in losses due to the tariffs and accusing the White House of abusing emergency economic powers to impose them.

Economists warn that the tariff regime could contract US GDP by over 1% and drive inflation well beyond 3%. In contrast, China has stressed the need for stability and cooperation in global trade, advocating for predictable rules and equitable development.