The UK’s logistics sector has called for restraint in escalating trade tensions linked to the Greenland dispute, warning that political brinkmanship risks harming businesses, consumers and fragile global supply chains.
Logistics UK has urged politicians on both sides of the Atlantic to adopt a measured approach to negotiations, stressing the need to protect international trade at a time when markets are only just beginning to recover from the shocks of the pandemic.
The business group warned that renewed threats of tariffs could destabilise supply chains and introduce inflationary pressures, undermining growth and investment when margins remain tight.
James Mills, head of trade policy at Logistics UK, highlighted the scale of the UK’s trading relationship with the United States.
“The United States is the UK’s largest single-country trading partner, with around 40,000 UK businesses exporting goods to the US and close to one million jobs supported by that trade,” he said.
He added that many of those businesses and jobs sit within the logistics sector, which underpins the smooth movement of goods across borders.
Mr Mills warned that further tariff threats would come at a cost.
“Any renewed threat of tariffs risks creating uncertainty that supply chains and exporters can ill afford, particularly when margins are already tight, and businesses are focused on growth and investment,” he said.
While backing the UK Government’s stance on Greenland, Logistics UK said diplomacy must remain the priority.
“We need a calm, de-escalatory approach as it is essential to protect trade flows, keep costs down and avoid unnecessary disruption for businesses and consumers,” Mr Mills said.
He added that the organisation supports “the UK government’s defence of Greenland’s sovereignty and its right to self-determination”.
Mr Mills also cautioned against underestimating the real-world impact of trade disputes.
“Predictable trade keeps goods moving and it is important to remember that tariff threats are not cost free to either side in the transaction,” he said.
“They land in supply chains and the resulting tab is ultimately picked up by customers.”
Logistics UK said maintaining stability in global trade is critical to protecting jobs, controlling costs and safeguarding long-term economic recovery.