Keep our cool amidst Trump tariff turmoil, says FM

Wales' first minister has urged businesses and politicians to "keep our cool" as turmoil continues to hit world markets following US President Trump's tariff hike.

Eluned Morgan told BBC Wales Today it was a "very unsettling time" for Welsh firms and pledged to work with them to "mitigate the very difficult circumstances".

Trump announced a 10% tariff on all imports from the UK and many other countries from 5 April, which he said was necessary to protect American jobs and manufacturing.

The United States is Wales' second biggest trading partner, after the European Union, but it is unclear what impact the tariffs will have.

Prime Minister Sir Keir Starmer has acknowledged the UK economy will be hurt by the latest tariffs and promised to react with "cool and calm heads".

According to the latest figures, in 2023, the US accounted for £2.9bn, or 15%, of exports. This consisted mainly of machinery and transport equipment.

Speaking on a trade visit to Denmark, Morgan said: "I think it's a very unsettling time, not just for businesses in Wales, but businesses across the globe.

"And, of course, this is likely to have an impact on the way people buy things in Wales and the way people sell things in Wales, and that includes lots of businesses who rely on those American markets.

"So we're doing a lot of work with businesses."

Morgan said Welsh Economic Secretary Rebecca Evans had been "working with them and the trade unions, just to see what we can do to mitigate the very difficult circumstances, a lot of which, of course, is beyond our control, but will have an impact on the way we live in Wales".

"What is important is that we, therefore, I think, keep our cool, but keep all the options open, because, you know, we can't continue with a situation where we're being buffeted around in this way."

The first minister said she was hopeful that the UK government will negotiate more favourable terms, with Chancellor Rachel Reeves saying "nothing is off the table" in any trade deal talks with the US.

Morgan also said there "may be some" opportunities for Welsh businesses in the current situation but issued a warning.

"We've also got to be aware that what it's likely to mean is that goods that are currently being produced in other parts of the world, say, in places like Vietnam, where they've had massive tariffs imposed on them, we may see those being dumped in onto our markets at a cheaper rate, which may undercut our own businesses.

"The implications here are massive," Morgan added.