Industry body warns tariff threats create uncertainty for 40,000 UK exporters as fragile post-pandemic recovery takes hold across logistics sector
Source: Muratart/Shutterstock.com
Logistics UK is urging a “measured approach” to the dispute over Greenland to protect supply chains and prevent inflation.
The trade association urged politicians on both sides of the Atlantic to avoid destabilising global markets and supply chains at a time when the “first shoots of recovery are starting to be seen after the shocks of the pandemic”.
The call for calm comes after the US threatened trade tariffs on eight countries in relation to its proposed takeover of Greenland.
US president Donald Trump has announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland that will come into force on 1 February.
He said the tariff rate could later rise to 25% and will last until a deal was reached.
Logistics UK head of trade policy James Mills said: ”The US is the UK’s largest single-country trading partner, with around 40,000 UK businesses exporting goods to the US and close to one million jobs supported by that trade.
”Many of these businesses and employees are in the logistics sector, which enables all trade to happen smoothly. Any renewed threat of tariffs risks creating uncertainty that supply chains and exporters can ill afford, particularly when margins are already tight, and businesses are focused on growth and investment.
“We need a calm, de-escalatory approach as it is essential to protect trade flows, keep costs down and avoid unnecessary disruption for businesses and consumers. We fully support the UK government’s defence of Greenland’s sovereignty and its right to self-determination.
“Predictable trade keeps goods moving and it is important to remember that tariff threats are not cost free to either side in the transaction: they land in supply chains and the resulting tab is ultimately picked up by customers.”
Trump has claimed that the Danish territory is essential for US national security. In response, the seven countries have dispatched a small number of troops to the island in support of Denmark.
