Japan approves record $785bn budget, boosts defence spending
Japan's cabinet has approved a record-high $785 billion budget for the next fiscal year - including the largest allocation for defence spending ever....
Inside Politics explored the impact of Donald Trump’s proposed tariffs on UK exports. Analysts warned of serious economic consequences if Britain fails to act decisively.
On this week’s Inside Politics, presenter Anastasia Lavrina examined the mounting concerns around Donald Trump’s proposed tariffs on UK exports. With over £60 billion in trade potentially affected, industries across Britain are bracing for impact.
Anastasia Lavrina: Has the UK become too dependent on the US market, making it vulnerable to this kind of pressure?
"We're not too dependent, but the US is our biggest single trading partner by country. Any hit of 5 to 10% would be deeply felt. The automotive industry alone trades nearly $10 billion with the US.
Government says it's been preparing, but I’m sceptical — talking to civil servants means little with Trump. If you don’t deal directly with him, it won’t matter.
Even if they want to support industries, the Treasury has no financial room to actually do it."
Anastasia Lavrina: Has Trump underestimated the UK’s strategic value as a trade ally?
"Trump has underestimated the world, not just the UK. His pattern is to cause chaos, then backpedal when damage is done — just like with Ukraine.
Even if we avoid some tariffs, we’ll still be hit by EU retaliation.
Northern Ireland’s already fragile. The whisky industry alone is looking at £169 million at risk. That’s serious money for regional economies.
This isn’t trade strategy — it’s a performance. And it’s turning America into an unreliable partner."
Anastasia Lavrina: Shouldn’t Britain have seen this coming, given Trump’s America First rhetoric hasn’t changed since 2016?
"Absolutely.
There was this idea — if we’re nice to Trump, he’ll be nice back. Maybe for a moment, but long-term he pushes harder.
Appeasement doesn’t work.
We should stand with allies — Canada, the EU, Japan — and respond together. Not to punish the US, but to demand fair trade.
If these tariffs go through, the global poor suffer, trade slows, and we all lose."
Anastasia Lavrina: Could these tariffs backfire by pushing Britain closer to other global partners like India or China?
"It might bring us closer to India, maybe even Europe again — but not China.
The reintegration with Europe is already happening because of Ukraine.
The problem is, Trump’s actions are immediate. Liberation Day is today. We are not ready.
Brexit already damaged our trade readiness. Farage says we missed Trump’s 2016 offer — maybe.
But today’s reality is we’re vulnerable.
A 1% GDP hit in one year? That’s massive.
Retaliatory tariffs won’t help. We need to talk. To America. To Europe. To India.
This isn’t just about whisky or car parts — it’s about how the world sees America. And right now, they see instability."
The Inside Politics discussion laid bare a sobering truth: Britain faces not just economic pressure, but a test of strategic resilience. As Donald Trump prepares to unleash a fresh wave of protectionism, the UK stands at a crossroads — between clinging to old assumptions and forging a tougher, more united trade front with global allies.
Whether through deeper ties with India, renewed cooperation with Europe, or coordinated resistance with like-minded democracies, Britain's response in the coming weeks may define its economic stability for years to come.
One thing is clear: this is no longer just a tariff story. It’s a question of whether the UK can withstand — and outmanoeuvre — a world where diplomacy is dictated by impulse.
Andy Preston, political commentator from Yorkshire
Professor Tim Wilson, geopolitical analyst
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