Trump’s Tariff War Enters Next Phase: What It Means for Britain’s Working Class Now 

As the clock ticks toward midnight in Washington, the next devastating phase of Donald Trump’s sweeping tariff offensive is about to slam into the global economy. With the White House confirming that increased duties on China will proceed as planned—pushing total tariffs to an unprecedented 104%—and approximately 60 other nations facing heightened levies, the trade war has officially escalated from skirmish to all-out economic conflict. 

“President Trump has a spine of steel and he will not break,” declared press secretary Karoline Leavitt, signalling that despite market turmoil that has wiped trillions from global valuations, the administration remains unmoved. While US Treasury Secretary Scott Bessent suggested the tariffs might be “temporary” bargaining chips, Trump himself cryptically noted they could be both “permanent” and the basis for negotiations—leaving trading partners in limbo. 

The immediate market response has been brutal. Wall Street’s benchmark S&P 500 has crashed below 5,000 for the first time in over a year, with the tech-heavy Nasdaq plummeting 2.2% in a single day. Though London’s FTSE temporarily rallied 2.7%, this represents mere crumbs compared to the massive losses since “liberation day” was announced. 

Trump says US taking in $2 billion a day from tariffs… 

Deepening Pain for British Workers 

For Britain’s working class, the implications of this escalation are increasingly dire. The 10% baseline tariff on UK exports to America—our largest single country trading partner—already threatened thousands of jobs in manufacturing, automotive, and food production. Now, as the trade war intensifies and supply chains fracture globally, secondary effects will compound the damage: 

Accelerated Factory Closures: Companies with thin margins that initially hoped to weather temporary tariffs will now face pressure to permanently shut UK operations as the conflict appears more entrenched. 

Rising Consumer Prices: Global supply chain disruption will push inflation higher across everyday essentials, from electronics to clothing, just as many families were beginning to feel relief from the cost-of-living crisis. 

Energy Cost Vulnerability: Britain’s uniquely high energy costs—already the highest among Western nations—will become an even more severe competitive disadvantage as manufacturers seek lower-cost production locations to offset tariff pressures. 

Job Market Destabilization: Beyond direct manufacturing losses, expect ripple effects through logistics, retail, and services sectors as economic uncertainty prompts businesses to freeze hiring or initiate redundancies. 

The UK Government’s Inadequate Response 

Chancellor Rachel Reeves’ response to this unfolding catastrophe betrays a dangerous complacency. Speaking to Parliament, she claimed markets are “functioning effectively” while rejecting calls for a “Buy British” campaign, stating “everyone will make their own decisions.” Her assertion that Britain shouldn’t become “inward-looking” represents precisely the outdated globalist thinking that has left our economy vulnerable. 

This passive stance—hoping for negotiated solutions while offering no protective measures for British workers—contrasts sharply with the actions of every other major economy. America is rebuilding its industrial base behind tariff walls. China is doubling down on state-directed manufacturing. The EU is developing comprehensive countermeasures. Meanwhile, Britain appears content to be economic collateral damage. 

Out on a Limb – What Britain Must Do Now 

With Trump’s escalation, the window for half-measures has closed. Britain needs an emergency economic defence plan that includes: 

1. Immediate Energy Cost Relief: National control of energy pricing for manufacturing to ensure British producers aren’t disadvantaged by the highest energy costs in the Western world.
2. Strategic Industry Protection: Targeted support for sectors most threatened by tariffs, including automotive, steel, pharmaceuticals, and food production—not through endless subsidies but through strategic market guarantees and procurement commitments.
3. Domestic Market Prioritisation: Government contracts and infrastructure projects should explicitly prioritise British-made materials and components, creating market certainty for manufacturers losing export opportunities.
4. Industrial Transition Fund: A major investment program to help threatened manufacturers pivot to products with domestic or non-US market potential, preserving skills and jobs while reducing American market dependency.
5. Emergency Retraining Initiative: For workers in communities facing immediate job losses, comprehensive paid retraining programs focused on sectors with growth potential, including green technology, construction, and food production.

The Coming Reckoning 

Trump’s trade offensive marks not just a policy shift but the death of an economic paradigm. The globalisation model that outsourced production while hollowing out working-class communities has reached its inevitable endpoint. What replaces it will be determined by which nations act decisively to protect their productive capacity and working populations. 

China has already made its position clear, calling Trump’s demands “naked extortion” and “blunt coercion dressed up as policy.” Their refusal to capitulate despite massive economic pressure represents recognition that economic sovereignty is non-negotiable. 

For Britain’s working class, the coming months will reveal whether our government grasps the historic nature of this moment. Will we continue clinging to failed free-trade orthodoxy while our industrial base crumbles, or will we finally implement a serious industrial strategy that defends British jobs and rebuilds economic resilience? 

As markets tumble and factories face uncertain futures, one thing is increasingly clear: the system that prioritised cheap imports over domestic production is collapsing.

The question isn’t whether this economic order will end—it’s whether ordinary working people will be sacrificed to preserve its final moments or protected through its painful transformation. 

Paul Knaggs