Trump tariffs latest: 'Anyone who thought the Protocol was a minor matter must now realise they are wrong' says Kate Hoey

That is the message from independent unionist peer Kate Hoey, speaking as unionists brace for a possible hardening of the Irish Sea border due to the US tariff regime in the weeks to come.

Meanwhile Downing Street made clear on Friday that the UK is “disappointed” with the new US levies on goods entering its borders, with Keir Starmer due to speak with other world leaders this weekend as they grapple with a dawning “new era” in trade.

In an announcement on Wednesday, Mr Trump revealed he is effectively rewriting the rulebook on global commerce, bringing to an end the decades-long drive towards free movement of goods.

He imposed a 10% tariff on goods imported into the USA from most of the world, including the UK. This takes effect tomorrow.

Goods from the EU will be subject to a 20% tariff. This takes effect from Wednesday.

It is widely expected that the UK and the EU will retaliate with tariffs on US goods entering their territories.

It leaves Northern Ireland in an unusual position.

Having been kept partly under the EU’s umbrella as a result of the Protocol / Windsor Framework, it looks likely that if the EU slaps a retaliatory tariff on US goods entering its territory, then that EU rate will apply to goods entering Northern Ireland, not the UK one.

In other words if the UK decides to impose a 10% tariff on imports of US goods, but the EU decides on a 20% tariff, Northern Ireland will probably be subject to the 20% rate (Ulster University economist Esmond Birnie told the News Letter yesterday that this scenario is “very likely”).

Northern Irish firms are supposed to be able to claim the difference back by applying to the UK government, but there have been complaints that this process is complicated and long-winded, and that it will end up adding to costs in any case.

The result? The Province would further diverge from Great Britain, with one rate of tariffs charged on goods arriving in Belfast and a different rate on goods arriving in Birkenhead.

Former Labour MP Kate Hoey, who led a debate in the House of Lords earlier in the week on the Irish Sea border, told the News Letter: "It just is a really good example of how we are left in the EU.

"On something as major as this Northern Ireland is still in the EU, despite having the same ballot paper [as the rest of the UK during the 2016 referendum].

"Whether we voted to remain or not, it doesn't matter, because Scotland voted to remain and they're not being affected by this.

"Other issues like parcels and seeds, and all those things about trade issues and pet stuff, is important and has affected a lot of people.

"But this really goes to the heart of any country, the economy of the country.

"It is wrong. If the government cared about Northern Ireland they would be invoking Article 16 right away, and they'd be going back to the EU and saying: this now has got to the stage where we can't have this.

"Anyone who tries to argue that the Windsor Framework/Protocol is just a minor adjustment, now should realise this is a huge, huge issue, and it just is unsustainable."

Article 16 is a part of the Protocol, which states: "If the application of this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade, the Union or the United Kingdom may unilaterally take appropriate safeguard measures.”

UUP MLA Steve Aiken told the News Letter: “The imposition of 10% tariff by President Trump on UK exports to the USA is bad news. Any additional trade barriers in this complex and uncertain world aren’t helpful.

"The 20% imposition on the EU is hardly unexpected, but reciprocal measures will also impact the global economy.

"For Northern Ireland, already being hammered with additional costs and bureaucracy by the Windsor Framework a trade war between the EU and US won’t be helpful. The Deputy First Minister has rightly pointed out that we could rapidly become collateral damage as the forgotten consequence of trade disputes.”