As Trump's tariffs damage global trade, I'm promoting Scottish businesses in UAE – Kate Forbes

Amid turmoil in global markets, Deputy First Minister Kate Forbes explains what she will be doing to boost trade in the United Arab Emirates during its first-ever Scotland Week

The steps taken by the US on trade tariffs in recent weeks and the continued global economic volatility are deeply concerning for industry in Scotland. The bottom line is that tariffs and uncertainty harm trade, and will cause damage to the global economy.

The question now is: how do we protect Scotland from this damage as far as possible and ensure that our businesses and people continue to prosper. In the immediate term, the Scottish Government will continue to do everything in its power to support Scottish industry and ensure workers and consumers are protected.

We are also in constant dialogue with – and, where appropriate, challenging – the UK Government on its response to the global situation, making sure the concerns and needs of Scotland’s businesses are understood.

The first-ever Scotland Week is to be held in the United Arab Emirates (Picture: Warren Little) | Getty Images

Starmer needs to accept new reality

Many of the fiscal and economic levers required to mitigate and start reversing this damage lie with the UK Government and it must use these powers to take bold and urgent action. It is clear we’re in an era in which its fiscal rules have become outdated.

The Prime Minister and Chancellor must accept that new reality and deliver serious investment to support industry, and shore up confidence for investors.

Recognising that business confidence has been shaken, the Chancellor should reverse the employers’ National Insurance hike immediately. The increase in their contributions was always the wrong move – the UK Government should not risk further economic damage by making it more difficult for business to take on or keep staff.

When global trade networks are being called into question, it’s more important than ever that the UK Government commits to a closer economic and trading relationship with the European Union which, after all, remains our biggest trading partner.

Open for business

Scotland and the US will remain close trading partners and continue to enjoy longstanding economic, social and cultural links. However, major economies worldwide recognise the skills, talent and expertise in Scotland. We have a phenomenal offer and can tell the entire world: Scotland is open for business.

From financial services to first-mover position in renewable energy and our world-renowned food and drink sector, we are forging an incredibly exciting proposition that is ripe for investment and ready to unlock new jobs, new opportunities and increase prosperity across the country.

That is precisely why the First Minister, business minister and I are spending some of parliament’s Easter recess undertaking engagements in key trading countries: the US, China, Japan and the United Arab Emirates.

In the UAE this coming week, my focus will be on working with a delegation of Scottish businesses to help build the relationships and develop the trade and investment opportunities that are key to the long-term economic success of an outward-looking nation.

A simple message

It will form part of the UAE’s first Scotland Week, an opportunity to showcase and champion Scottish products and services – to demonstrate that we have unique, innovative, investor-friendly industries ready to do business across the world.

In the context of the current economic uncertainties, my message is simple: the Scottish Government stands square behind Scottish businesses and will do everything in its power to ensure industry, its workers and consumers are protected.

We must, can and will continue to promote and protect Scottish businesses in finding a way through this challenging and uncertain time.

Kate Forbes is Deputy First Minister