Theresa May’s Brexit strategy caused many to question the country’s future in trade. The British Prime Minister has been exploring the globe for future trading partners since deciding to depart from the European Union. But now May has to threaten their key ally the United States with a “trade war.”
Theresa May threatened the trade war with the U.S. after it placed punitive tariffs on British-made aircraft. The U.S. Department of Commerce decided Bombardier aircraft, which is built in Northern Ireland, would be subject to a 219% import duty. This happened after the American aviation mega-company Boeing complained that Bombardier was given unfair state aid.
The British Government responded to the huge increase by warning the Boeing’s behavior “could jeopardize” future Ministry of Defence contracts for its aircraft such as Apache helicopters. Prime Minister May appealed directly to President Donald Trump for intervention in the dispute. She is now concerned about the future of signing a post-Brexit free trade deal with the United States. And she is also facing tension with her relationship with Northern Ireland because Bombardier employs more than 4,000 people in its Belfast factories.
Mrs. May said yesterday she was “bitterly disappointed” with the decision of the US Department of Commerce to propose an interim tariff of more than 219% on the import of Bombardier C-Series jets to the US. She said that Boeing’s long-term partnership with the Government is being “undermined by this behavior.”
“We are very clear about the importance of Bombardier and the importance of those jobs in Northern Ireland, and we will be doing everything we can to ensure that we can see those jobs being guaranteed in future,” she added.
The Prime Minister’s comments were agreed upon by Sir Michael Fallon, the Defence Secretary. He said: “This is not the kind of behavior we expect from a long-term partner. We have contracts in place with Boeing for new maritime patrol aircraft and for Apache attack helicopters, and they will also be bidding for other defense work, and this kind of behavior clearly could jeopardize our future relationship with Boeing.”
Wilbur Ross, the US Commerce Secretary, said in a statement: “The U.S. values its relationships with Canada, but even our closest allies must play by the rules. The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”
What do you think the future holds for British Trade now that it will be without the power block of the European Union? Should Trump intervene in this dispute with Boeing?
Credit: Telegraph UK