The United Kingdom is actively working to finalize its defense review while devising strategies to evade potential tariffs from the Trump administration. As trade tensions escalate, the UK seeks to align itself more closely with the United States, particularly through increased energy imports and defense acquisitions. Chief among those is not getting caught up in a wider regime of EU tariffs aimed at the United States. Simultaneously, we want to improve our energy security and increase our military proficiency.
One significant aspect of the UK’s strategy is its consideration of purchasing additional liquefied natural gas (LNG) from the United States. In fact, U.S. LNG already represents 26% of the UK’s energy import mix. This percentage is set to increase as the UK contends with falling North Sea production and falters in efforts to accelerate its nuclear energy programs. The UK is greatly increasing its gas imports from the US as a solution to growing trade imbalance. This strategy puts U.S. industry first and dovetails beautifully with Washington’s pro-drilling mantra.
The UK’s commitment to an integrated defense focus is equally important. Behind the public posturing, the UK has already started taking delivery of orders for F-35 fighter jets, a key pillar of the UK’s new “Active” military strategy. The UK has been moving toward other defense buys from the U.S. These new acquisitions are in line with a larger strategy to counterbalance tariffs. This strategy deepens the military partnership between the two countries. It makes the UK better positioned to weather any future Trump administration tariffs should they come.
While the UK is committed to enhancing its defense capabilities, it remains wary of being ensnared in trade disputes. Officials are still trying to figure their options out in order to reduce risks that come with Trump’s tariff policies. They are explicitly and strategically raising America’s imports of American gas. They’re looking at winning enough defense contracts to build a buffer that will protect the UK from the economic damage wreaked by tariff wars.
Additionally, this shift to US energy products is essential to the UK’s long-term energy security goals. Domestic production from the North Sea is in steep long-term decline. If ensuring energy stability is a goal, U.S. LNG is a clear and promising solution we can turn to. The sluggish pace of nuclear energy project deployments only increases the importance of having a diversified energy portfolio, thus making U.S. imports even more attractive.
The UK’s desire to sidestep tariffs reflects a broader understanding of the geopolitical landscape under Trump’s administration. The UK is deeply involved in joint economic cooperation initiatives with the U.S. It is trying to build a solid relationship that protects its needs and stops short of any tit-for-tat economic measures.