Daijiworld Media Network - London

London, Apr 14: In response to the growing challenges posed by President Donald Trump's sweeping trade policies, the UK government has pledged £20 billion to assist exporters, particularly those hit by the US’s controversial import tariffs. The finance ministry announced that this initiative would increase the UK’s export finance package to a total of £80 billion, with thousands of UK businesses, including small enterprises, set to benefit from the expanded support.

Finance minister Rachel Reeves stressed the importance of helping UK businesses weather the difficulties ahead, especially given the global economic shifts. “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,” Reeves said. A significant portion of the new funding, up to £10 billion, will be allocated specifically to firms struggling in the short term due to the current tariff situation.

The package will also offer loans of up to £2 million to small businesses, providing them with the financial tools needed to adapt to the changing trade environment. While the 10 percent levy on British goods by the US is expected to have a widespread impact, certain industries such as auto, steel, and aluminium will face even steeper tariffs, with some reaching as high as 25 percent.

The United States remains the UK's largest trading partner, with investments exceeding £1.2 trillion. As the UK strives to negotiate a post-Brexit trade deal with the US, officials are hopeful that the new financial support package will help UK businesses remain resilient despite the ongoing tariff pressures. However, Business and Trade Secretary Jonathan Reynolds acknowledged that while progress is being made, the timeline for a final deal remains uncertain, with President Trump holding the reins on the US side of negotiations.