Analysts are raising red flags about the long-term viability of a US-UK trade agreement, with one leading economic researcher highlighting unpredictable risks despite recent tariff reductions. Mattia Di Ubaldo, deputy director of the UK Trade Policy Observatory, cautioned that Washington retains unilateral authority to reverse trade concessions under national security provisions.
"This agreement rests on unstable foundations," Di Ubaldo told KhabarAsia. "The current tariff reductions could disappear overnight if either side perceives economic threats, particularly in sensitive technology sectors."
Security Concerns and Tariff Risks
The warning comes as businesses weigh cross-Atlantic investment opportunities. While recent developments have eased some trade barriers, experts note lingering questions about dispute resolution mechanisms and political appetite for sustained cooperation.
Impact on Asian Markets
The evolving US-UK partnership could influence supply chain patterns across Asia, where many manufacturers serve both markets. Analysts suggest companies with global operations should monitor potential ripple effects in automotive, pharmaceutical, and semiconductor industries.
