David Lammy has orchestrated the return of Britain’s top diplomats in an intensive effort to stimulate economic growth and counter the adverse effects wrought by former US President Donald Trump’s tariffs. This initiative sees senior ambassadors and high commissioners embarking on a nationwide roadshow to encourage British businesses to expand their export activities and forge stronger connections with their counterparts in the countries to which these diplomats are posted.

The urgency of the mission is underscored by recent findings from the E-Commerce Trade Commission, revealing that 70,000 British businesses capable of exporting have yet to do so. This represents a missed opportunity estimated to be worth £7 billion in potential economic growth. With the UK’s economic growth sluggish at just 0.7% in the first quarter, and Chancellor Rachel Reeves facing a yawning £18 billion shortfall in the budget, the government is deploying all available resources to reverse this trend.

This diplomatic push follows direct instructions from the Prime Minister, emphasizing the need for every government department to contribute to economic growth. Foreign Secretary David Lammy has championed a “new partnership between government and business,” seeking to embed economic interests at the core of the UK’s foreign policy. Speaking to The Independent, Lammy described the diplomats as the “salesforce for the UK economy,” who are engaging with regional mayors and businesses to explore trade and investment opportunities that can benefit the UK on the global stage.

The roadshow strategically targets eight key growth sectors outlined in the government’s modern Industrial Strategy, including defence, clean energy, life sciences, digital technology, advanced manufacturing, and services. Recent visits have included Britain’s Ambassador to Japan engaging with the hovercraft manufacturer Griffon Marine in Portsmouth, highlighting synergy opportunities in defence and advanced manufacturing, while the Ambassador to Belgium’s tour in South Wales focused on semiconductor technology innovation.

Underlying this diplomatic drive is the broader challenge posed by Trump-era tariffs, which have had a chilling impact on business confidence and global supply chains. While the UK, through an agreement brokered by Prime Minister Keir Starmer, has managed to mitigate some of these tariffs, limits remain. Notably, a recent trade deal between the UK and the US has reduced tariffs on British car exports from 27.5% to 10% and eliminated tariffs on aircraft engines and parts. However, tariffs on UK steel and aluminium remain unresolved, with the risk of elevated duties looming if further agreements are not reached. The government continues to stress its commitment to zero tariffs on core steel products, but concerns linger over how sustained protectionist policies affect the UK economy.

These ongoing tariff challenges have coincided with broader market instability and political recalibrations. Despite efforts by Keir Starmer’s administration, the UK’s trade relationship with the US has faced persistent difficulties in overcoming protectionist measures implemented during Trump’s presidency. Economic commentators have noted that while the “special relationship” between the UK and the US is frequently cited, Britain’s interests may increasingly align with European and Canadian partners in the face of this trade tension.

Lammy’s approach also involves transforming the diplomatic service’s culture, with plans to deepen cooperation between civil servants and business leaders. Proposals include establishing a Geopolitical Impact Unit and an insight service to help businesses navigate complex international trade environments. Additionally, initiatives such as staff exchanges between government and leading companies aim to foster a better mutual understanding of commercial and political priorities.

This effort dovetails with wider government commitments, including a substantial £86 billion boost to the UK’s science and technology sectors announced in the Spending Review, designed to empower regional leaders to develop innovation clusters that leverage local talent and opportunities.

The diplomatic strategy also mirrors the appointment of experienced figures such as Lord Peter Mandelson, designated as Britain’s next ambassador to the United States. Mandelson’s renowned expertise in EU and international trade policy will be critical in negotiating the delicate trade landscape with the US, particularly as tariffs and trade agreements remain pivotal issues.

Lammy himself has taken a nuanced stance regarding American protectionism. While critical of the return to tariffs and trade barriers, he has acknowledged the need to find “common ground” with the incoming US administration. He supports increasing NATO defence spending beyond the existing 2% of GDP target, aligning with broader Western security priorities in a geopolitical climate marked by tension, notably with Russia.

In sum, the UK’s diplomatic corps, led by figures like Lammy, is actively recalibrating its role to better support economic growth by leveraging international relationships, policy innovation, and targeted sectoral engagement. This multifaceted approach aims to offset the legacy of disruption wrought by global protectionism and ensure British businesses can thrive in an interconnected world.

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Source: Noah Wire Services