UK urged to deploy EU-style ‘trade bazooka’ against Trump’s tariffs

UK business leaders are urging the government to adopt a robust “trade bazooka” similar to the European Union’s anti-coercion instrument in response to recent tariff threats from US President Donald Trump. The British Chambers of Commerce (BCC) warned that the UK’s current economic security measures are insufficient, putting growth and jobs at risk amid rising geopolitical tensions. The call comes after Trump threatened to impose significant tariffs on the UK unless it repeals a digital services tax affecting US technology firms. The BCC highlighted the need for urgent government action to shield British companies from punitive trade policies and economic coercion by other countries. The proposed “trade bazooka” would grant ministers powers to impose duties, restrict market access, enhance investment scrutiny, and control subsidies as defensive measures. This approach mirrors the EU’s mechanism, which allows it to counteract economic bullying by limiting access to public procurement, financial markets, and foreign direct investment from aggressor states. The report also emphasizes the importance of integrating UK businesses more deeply into European supply chains, particularly in light of the EU’s Made In Europe agenda. It calls for a stronger role for UK firms in defence procurement and recommends the establishment of a dedicated economic security cabinet committee to coordinate responses to external economic threats. The BCC criticized years of government neglect in addressing economic security, stressing that the UK must adopt a more muscular stance to protect its competitiveness and national strength. Shevaun Haviland, director general of the BCC, underscored the urgency of enhancing economic security amid an increasingly unstable global environment shaped by Brexit, the Covid pandemic, and conflicts in Ukraine and the Middle East. The government’s trade minister has yet to respond publicly to these recommendations, but the BCC’s report signals growing concern among UK businesses about their vulnerability to international economic coercion and the need for stronger protective measures.