Labour told to be ‘prepared for all scenarios’ amid threat of Trump trade war

Labour has been told to “be prepared for all scenarios”, amid the prospect of a Trump trade war due to the President-elect threatening to impose tariffs on all imports into the United States.Trump is set to re-enter the White House today, just months after defeating Vice President Kamala Harris in 2024’s US Presidential Election.He has vowed to slap a 25 per cent tariff on goods imported from Mexico and Canada – a punishment for what he says is their failure to curb the flow of drugs and undocumented migrants into the US.These steeper measures could come into effect just hours after his inauguration later today.When asked what the UK would do if the same tariffs were imposed on it, Darren Jones, the chief secretary to the Treasury, said the Government has a plan in place.Speaking to Sky News, he said: “It’s not breaking news that the government prepares for all scenarios.”However, he said that he believes that the former President’s return to the White House “could be an enormously positive thing with lots of opportunities”.He said: “Britain is a brilliant country with huge capabilities and assets which are valued not just to the British people, but to the American economy and other parts of the world.”LATEST DEVELOPMENTS:’A ludicrous man!’ David Lammy slammed for ‘sucking up’ to Donald Trump ahead of inauguration’Grow up!’ Tory MP urges Labour to create a ‘adult relationship’ with Donald TrumpTrump inauguration 2025: What time will President-elect be sworn into White House?”I have no doubt whatsoever that under the Trump administration, there are going to be plenty of opportunities that we can seize, and we should be positive about that and be strong about securing this deal.”My broader point is that we shouldn’t be looking at President-elect Trump’s inauguration as a risk, or a bad thing for the UK. It could be an enormously positive thing with lots of opportunities.”Trump is set to be sworn in as the 47th president of the United States today in a historic ceremony moved indoors to the Capitol Rotunda.The inauguration will take place at noon in Washington DC (5pm GMT) with the procession to the White House taking place around 3pm ET (8pm GMT).Breaking with tradition due to temperatures projected to fall below -12C, the inauguration ceremony will take place inside the Capitol building rather than on its western steps facing the National Mall.Last month, Trump issued a stark ultimatum to the European Union, threatening widespread tariffs unless the bloc increases its purchases of American oil and gas.According to US figures, the trade imbalance between the two powers is substantial, with EU goods imports reaching £553.3billion in 2022 compared to US exports of £350.8billion.This created a US goods trade deficit of £202.5billion that year.

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