Trump’s Tariffs Are A “Profound” Challenge And “Not A Passing Phase”, Says PM
3 min read
Prime Minister Keir Starmer has warned that Britain is in a "changing and completely new world" after Donald Trump's tariffs on countries including the UK sparked global economic panic.
Speaking in the West Midlands on Monday, Starmer said the country was now "an era where old assumptions which we've long taken for granted simply don't apply any longer".
As part of his "liberation day" tariff announcements last week, the US president said he would impose a 10 per cent tariff on all UK imports.
Trump also imposed a 20 per cent tariff on all EU goods entering the US, as well as a 54 per cent tariff on Chinese imports, causing stock markets worldwide to fall sharply and prompting warnings about a recession in the US.
Last week, Secretary of State for Business and Trade Jonathan Reynolds told the House of Commons that the government would consult on possible retaliation to US tariffs, but stressed that the government would be "calm" and "clear-eyed" in its approach.
Speaking at Jaguar Land Rover factory on Monday afternoon, Starmer said: "Nobody’s pretending tariffs are good news."
He added: "But this moment has also made something very clear, that this is not a passing phase.
"Just as we've seen with our national security and defence, particularly over recent months in relation to the war in Ukraine, now with our commerce and trade, this is a changing and completely new world, an era where old assumptions which we've long taken for granted simply don't apply any longer."
Starmer said that it was a "moment for cool heads", but also "a moment for urgency" and face the challenge to renew Britain to ensure "we're secure in this era of global instability".
The PM said it would be "wrong" to simply walk away from the US-UK special relationship despite the introduction of tariffs.
The government is currently in negotiations with the White House over a possible UK-US economic deal that it hopes will lead to the removal of tariffs on British goods.
However, Starmer added that he would only strike a deal with the US if it is in the national interest and "the right thing to do for our security".
Starmer said that he had been discussing a deal with the US "intensely" over the last few days, but he would also work to reduce barriers to trade with other countries around the world and "accelerate trade deals with the rest of the world".
The government today made several announcements in an attempt to support the UK car industry, amid fears it would be hit hard by US tariffs.
Chancellor Rachel Reeves confirmed today that the government was restoring the 2030 ban on the sale of new petrol and diesel cars after it was extended to 2035 under the previous Conservative government.
However, firms will be given greater freedom on how to meet the target, in order to decrease the burden on companies as they are hit by the tariffs.
As part of this, Starmer confirmed that hybrid vehicles will be able to be sold until 2035 to help ease the transition and give the industry more time to prepare.
Starmer also announced £600m of investment in new health and data research with Wellcome Trust, as part of a move to boost the life sciences sector, which he said was a "pivotal part" of the export economy.
