​Trump tariffs and Windsor Framework: 'We want to hear your views'

Business now faces a new world order with economic rulebooks ripped up as President Trump sets a new, but as yet unclear, agenda with many wondering what is the ultimate goal. At FSB are focusing on what this means for businesses and what might be done to ease the pressure. Whether we like it or not, we are going to have to deal with what is before us. In the midst of this, it is absolutely vital that we are fully informed do we can accurately represent the views of small businesses on a number of important issues. Central to the uncertainty created by the tariff announcement and its impact on Northern Ireland business, is our position with the Windsor Framework which continues to evolve, whether positively or negatively. Accordingly, we have launched a survey to assess how the Windsor Framework is impacting businesses of different sizes, sectors and regions right across the UK. We want to hear your views. You can help inform Government policy by completing the survey at https://www.surveymonkey.com/r/238M8PJ. Since the tariffs announcement, we have called for a measured and strategic approach to the escalating trade tensions. We don`t want Northern Ireland becoming ‘collateral damage’ in the EU’s response to tariffs imposed by the Trump Administration, FSBNI has written to the European Commission regarding the EU’s potential retaliation and the unintended consequences this could have on Northern Ireland due to the Windsor Framework. There are two clear routes by which that may occur—both of which will achieve similar leverage, but with one risking real damage to Northern Ireland and the other less so. If the EU applies some form of reciprocal tariffs as 'trade defence’ measures, Northern Ireland will be compelled to implement them as well, since the ‘at risk’ of the Windsor Franework regime does not apply in these circumstances. However, if the EU were instead to employ a different legal basis—such as an ‘Anti-Coercion Instrument’—Northern Ireland might be spared from these additional tariffs, as this mechanism does not currently apply under the Protocol. We would much prefer that the EU uses this mechanism so it does not negatively and directly impact Northern Ireland in the first place. At home here, our message to local and national government is to focus on what support they can give to business at a time of such high economic volatility. Businesses need urgent clarity and FSB urges the NI Executive not to introduce any policies which would place further constraints on businesses at a time when there is so much economic uncertainty. With proposals on the table for a ‘Good Jobs’ Employment Rights Bill from the NI Department for the Economy, now is not the time to add extra costs or inhibitors to businesses already under massive pressure. They are already dealing with rising energy costs and the rises in National Insurance contributions and the National Minimum Wage announced in the budget, and now trade restrictions. They do this despite not receiving business rates support which their counterparts in the retail, hospitality and leisure sectors did in England. The Executive must also be more pro-active and seize the opportunity to use powers given to them a decade ago and reduce Corporation Tax. We need to be considering using every potential opportunity to drive our economy forward and upwards. FSB is calling for the UK Government and NI Executive to work closely together to ensure that Northern Ireland does not become collateral damage as tensions rise in the face of a potential escalating trade war and the EU weighs up its retaliatory measures.