Can Britain be a ‘sensible and stable’ haven in a trade war?

Britain became a byword for self-inflicted economic harm and instability after Brexit and former Prime Minister Liz Truss’ calamitous tax cuts.

- ESHE NELSON

But now the country sees an opportunity to serve as a haven from the trade war that is rattling markets and the global economy.

President Donald Trump has limited the US tariffs on Britain to the “baseline” rate of 10%, and his administration has been engaging in talks on a trade deal focused on technology. Although a deal has yet to materialise, Britain has avoided being a main target of Trump's ire over trade relationships.

To be sure, some of that advantage was ceded late Wednesday, when Trump said he would pause for 90 days the higher “reciprocal” tariffs on countries other than China, setting all other tariffs at a “universal” 10%. That leaves Britain subject to the same blanket tariffs as a host of countries that have not been as solicitous towards Washington.

Still, the European Union, Japan, Vietnam and dozens of others now have to negotiate to avoid higher tariffs from being reimposed, raising the stakes.

Yvette Cooper, Britain's home secretary, said Thursday that British officials were trying to strengthen trade relations with other countries, including the European Union.