Donald Trump has announced that all aluminium, steel and cars imported into the United States from the United Kingdom will be subject to a 25% tariff. This is expected to have knock-on effects, with Britain being a less popular choice for Americans to buy from. Currently, around four in five cars that are manufactured in the UK are exported to the USA, so this brings serious problems.
However, whilst the economic impact has been well publicised, the environmental effect has not been talked about enough. This could have a serious effect on Keir Starmer’s target for an 81% emissions cut by 2035.
Joshua Houston, Environmental Expert at GreenMatch has revealed why below.
1: Trade diversion
These tariffs will likely lead to changes in Britain’s trading patterns. The UK Government might have to look elsewhere for countries to export to, and these nations could have weaker environmental regulations. This means more emissions and potential waste, which increases the UK’s carbon footprint when trading.
2: Economic shocks
The UK Government has committed to spending £11.6 billion between 2021 and 2026 on International Climate Finance (ICF). This is to aid developing countries in reducing their carbon footprint, which will ultimately help the Paris Agreement’s goal of limiting global warming to below 2 Degrees Celsius above pre-industrial levels.
However, the economic uncertainty caused by these tariffs could force the government to rethink its spending. They might have to make cuts in areas relating to climate change if industries start struggling in the UK. It wouldn’t just be the international Climate Finance budget being cut; investment in green environmental initiatives and technologies would likely be reduced.
3: Increased carbon emissions
Tariffs will also reduce the UK's imports from the United States. This could lead Britain to source from countries with higher carbon footprints. Manufacturers may have to turn to countries with less environmentally friendly means of production, so by the time those materials arrive in the UK, their environmental impact will be significantly greater.
Joshua Houston, Environmental Expert at GreenMatch:
‘’Donald Trump has made himself noticed in the first couple of months since being reelected as President of the United States. His controversial tariffs will have big effects on traditional trading partners like Canada, Mexico, the EU and the UK.
It might even make the British Government rethink their plan to tackle climate change. We might have to start trading with less eco-minded nations and exporting our production further away. All of this will have a negative impact on the environment.’’
Joshua is a GreenMatch writer who thrives at sharing useful advice on how to save people money on their household costs and making their lives more sustainable.
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