**London**: British manufacturers warn of imminent job losses if the government fails to secure a trade deal with the US avoiding damaging tariffs. The IMF highlights global economic risks, while UK growth forecasts drop, intensifying challenges for Labour amid ongoing trade talks.
British manufacturers are facing the prospect of job cuts within weeks unless the government can secure a trade deal with the United States that avoids the imposition of tariffs, according to warnings presented to MPs today.
Stephen Phipson, chief executive of the trade body Make UK, warned the Business and Trade Committee that firms are already preparing contingency plans to mitigate the anticipated downturn in trade resulting from the protectionist tariffs introduced under US President Donald Trump’s administration. He cautioned that if efforts by Labour leader Sir Keir Starmer and Business Secretary Jonathan Reynolds to negotiate an exemption or carve-out from these tariffs fail, job losses could follow by the summer.
Addressing MPs, Mr Phipson described the situation as “extremely challenging” for manufacturers, who face uncertainty about US trade policy “from one day to the next.” He highlighted that many manufacturers are currently adopting temporary measures, hoping to gain clarity in the coming months. However, he added that a significant reduction in demand would likely necessitate scaling back factory operations, which could lead to layoffs. When Business and Trade Committee chairman Liam Byrne directly referred to the likelihood of job losses, Mr Phipson affirmed, “That would be the end result of a dramatic reduction in volume, absolutely right, yes.”
This warning coincides with a statement from the International Monetary Fund (IMF), which has underscored the global impact of the US tariffs. The IMF described the measures as catalysts for widespread trade disruption and unprecedented uncertainty, factors expected to substantially slow economic growth across nations worldwide.
Compounding the concerns for the UK economy, the country’s growth forecast was significantly revised downward, with the British economy now expected to grow by just 1.1 percent in 2025. This figure reflects a reduction of 0.5 percentage points from previous projections, representing a fresh challenge for the Labour Party.
Despite the difficulties, Mr Phipson commended the government’s ongoing efforts to secure a trade deal with the US, emphasising the importance of these negotiations in safeguarding the future of British manufacturing. The situation remains fluid as trade talks continue amid broader concerns about the implications of protectionist policies on global commerce.
Source: Noah Wire Services
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