UK Expands $26 Billion Export Finance Amid Tariff Challenges
LONDON (Reuters) - Britain said on Sunday it will expand financing support for exporters by 20 billion pounds ($26 billion), including those affected by U.S. tariffs, in an effort to give them stability and certainty in what it described as a new era of global trade.
The tariffs, introduced by U.S. President Donald Trump, have deepened uncertainty for UK businesses about their exposure to the new trade regime.
The United States has put tariffs of 25% on imports of steel, aluminium and cars, and a baseline tariff of 10% on most other imports from countries like Britain.
The government said the increase raises UK Export Finance's (UKEF) lending capacity to 80 billion pounds, with up to 10 billion pounds set aside to support those most affected by the tariffs in the short term.
"The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead," finance minister Rachel Reeves said.
"Today's announcement will do that just, with thousands of businesses right across the country set to benefit."
Small and medium-sized businesses will also have access to loans of up to 2 million pounds as part of the package.
($1 = 0.7645 pounds)
(Reporting by Sam Tabahriti; Editing by Alistair Smout)
