The Warwickshire-based international trade expert said: “The reverberations of this dispute are set to be felt far beyond the borders of the two economic giants.
“The United States is ramping up tariffs on various Chinese imports. This trend is only moving in one direction, so UK businesses need to prepare for changes in how they do business.
“There is a risk of more retaliatory measures from China which could including imposing tariffs on US goods.
“Therefore, UK firms that are part of US-based supply chains or those whose products are perceived as US-originating could find themselves caught in the crossfire.
“The situation is constantly changing, requiring close monitoring and strategic adaptations for a number of industries. The indirect consequences of any changes could be significant.”
With the EU also launching investigations into Chinese imports, including whether to impose restrictions on Chinese-made EVs, the expansion under the Biden administration of border taxes introduced by Donald Trump means tensions are high.
What’s more, a victory for Trump in the US elections in November may add to the risk of a trade war, former national security adviser John Bolton has warned.
David said the UK won’t be alone in experiencing ‘ripple effects’ as the situation evolves.
“China has already signalled it will retaliate against trade barriers introduced by the US after it launched an anti-dumping probe into chemical imports. This will also impact EU made products as well,” he said.
“On a macro level, the US-China trade tensions could contribute to more global economic issues. For UK firms that depend on international supply chains, this could cause more problems.
“As the situation unfolds, UK firms must remain vigilant and agile – monitoring the evolving trade landscape, assessing risks and opportunities, and adapting strategies accordingly will be crucial.
“In an interconnected global economy, the ripple effects of trade disputes can be far reaching, and UK businesses must be prepared to navigate the choppy waters ahead.”
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