Protectionism’s Dual Edge: How Trade Policies Are Shaping Britain’s Economy

As the UK grapples with economic recovery post-Brexit, rising global protectionism presents both challenges and opportunities for its economy. A new report from the Economics Observatory examines how foreign and domestic trade barriers are influencing key sectors, including manufacturing, agriculture, and services.

The report highlights that foreign protectionist policies, such as US and EU subsidies and tariffs, are squeezing UK exporters, limiting market access, and increasing costs for businesses reliant on global supply chains.

Domestically, the UK government’s push for self-reliance in food production and critical industries aims to shield the nation from external shocks but risks raising prices for consumers.

Experts caution that a fine balance must be struck. “Protectionism can foster local industries, but excessive barriers risk isolating Britain further from global trade,” said an economist at the Observatory.

The report underscores the need for policies that bolster competitiveness while maintaining open markets to secure economic resilience.

With inflation still a pressing concern and trade volumes yet to reach pre-pandemic levels, policymakers are under pressure to navigate this complex landscape. The future of Britain’s economy will depend on its ability to adapt to these shifting trade dynamics.