The British government ramped up actions to help protect businesses and households from some of the economic tumult created by President Trump’s decision to raise tariffs and upend the norms of global trade.
The government said on Sunday it would suspend tariffs on 89 products for about two years to help businesses and consumers save money. The products include those for construction, such as plywood and plastics, and everyday household items, such as pasta and fruit juices.
Officials will also increase financing support for exporters by 20 billion pounds ($26 billion), through partial loan guarantees, and give small businesses access to loans of up to £2 million.
As Mr. Trump raises tariffs on most imports, including those from Britain, to a 10 percent base line and even higher for certain goods like cars and steel, the British government has sought to calm anxieties at home. Officials have said they want to move quickly to support companies as they try to sustain fragile economic momentum.
“This week, we witnessed the uncertainty of a changing world,” Rachel Reeves, the chancellor of the Exchequer, wrote in The Observer, a Sunday newspaper. In response, the government “must rise to meet the moment,” she wrote.
The announcements on Sunday followed other interventions by the government in recent days to bolster protections for firms affected by tariffs. On April 6, the government eased rules on electric vehicle sales after Mr. Trump imposed a 25 percent tariff on cars imported into the United States. British officials also relaxed regulations to speed up timelines for clinical trials to support the life sciences sector with Mr. Trump also expected to impose levies on the pharmaceutical industry.
And on Saturday, the government took control of British Steel, the country’s last large plant producing crude steel, from its Chinese owners, Jingye, to protect jobs and make sure the blast furnaces keep operating.
“Our economy is too exposed to global disruption and supply shocks,” Ms. Reeves wrote in the Observer column. “We need a strong, smart and agile state to support key industries and back those sectors of the economy particularly affected by tariffs.”
As President Trump’s trade policy has led to widespread uncertainty, many countries are not waiting to see where tariffs settle and are already putting in place protections for their economies. Germany, Italy, Portugal and Spain announced more than 50 billion euros’ worth of financial support last week in “tariff shields” for businesses. There are concerns that the region’s weak growth could be stifled as consumers and firms spend and invest less.
The British economy is relatively trade intensive and vulnerable to outside shocks. Its largest trading partner, the European Union, is struggling with slow growth that will weigh on Britain, too. The nation’s finances are also exposed to global turmoil. For example, as the yield on U.S. Treasury bonds rises, so do those in British government debt, raising borrowing costs for the government.
Data published last week showed that the economy grew 0.5 percent in February, an unexpectedly strong rebound, driven by an increase in manufacturing output. Analysts said this could have been caused by exporters trying to front run expected tariffs and that economic strength would not be sustainable.
Despite the stronger growth, economists at Pantheon Macroeconomics slashed their forecasts for Britain’s economic growth to 0.7 percent this year, down from 1.1 percent, and forecast 0.5 percent growth in 2026, half of their previous forecast.
Eshe Nelson is a reporter based in London, covering economics and business news for The New York Times.
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