Trump tariffs live: Reeves says ‘nothing off the table’ in US trade talks after FTSE finally rallies – UK Times

The impact of Donald Trump’s tariffs on the UK was discussed by the prime minister and his senior government colleagues when they met on Tuesday, according to Downing Street.

Sir Keir Starmer “underlined the Government’s resolve to protect our key industries and support the wider economy” in light of the sweeping US import taxes, according to a readout of Tuesday morning’s Cabinet meeting provided by No 10.

“He reiterated that businesses have been clear they want a calm and pragmatic response from the Government, continued dialogue with the US on an economic deal, while making preparations for all of the options available in response,” the readout added.

Sir Keir also reiterated his warning, first given during a visit to Jaguar Land Rover’s West Midlands car plant on Monday, that “this new era for the global economy was not a passing phase”.

Jonathan Reynolds, the Business Secretary, also insisted “the business community supported the Government’s calm response”.

Meanwhile, Rachel Reeves is continuing progress on a trade deal with India, according to No 10, and told Cabinet the UK will “continue to pursue an economic deal with the US, better trading relations with other countries including India, the Gulf, and the EU”.

Shares of US Steel are rising ahead of the bell after President Donald Trump ordered a new national security review of Nippon Steel’s proposed bid to buy US Steel for nearly 15 billion US dollars.

President Joe Biden blocked the deal just before leaving office and Mr Trump had vowed to do the same in previous months.

Late on Monday Mr Trump ordered the Committee on Foreign Investment in the United States to review the transaction “to assist me in determining whether further action in this matter may be appropriate.”

Shares soared 16% on Monday and are up nearly 3% before the opening bell on Tuesday.

Rachel Reeves has said she will meet her US counterpart Scott Bessent “shortly”.

With the fallout from Donald Trump’s universal tariffs growing, the chancellor said she is discussing “a range of areas” with the US Treasury secretary.

“The focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on those sectors that are subject to the higher tariffs,” Ms Reeves said.

“Discussions are ongoing across a range of government departments, including the Treasury, with the United States, and I will be meeting US Treasury secretary Scott Bessent shortly,” she added.

Buying British in response to Donald Trump’s tariff war is “not a good way forward”, the chancellor has warned.

Amid calls from the Liberal Democrats to encourage British consumers to take a nationalist response to the US president’s tariffs, Rachel Reeves urged against such an approach.

She said: “In terms of buying British, I think everyone will make their own decisions.“What we don’t want to see is a trade war with Britain becoming inward looking, because if every country in the world decided they only wanted to buy things produced in their country, that is not a good way forward.

“Our country has benefited hugely from access to global markets, and we will continue to want to be able to do that.”

A European Union (EU) spokesperson has revealed the trading bloc’s retaliation to Donald Trump’s tariffs will be presented early next week.

Dubbed ‘Liberation Day’ by the US president, all nations were included in the sweeping measures – with the UK hit by a 10 per cent tariff on all exports to the United States as Trump pledged America “will no longer be ripped off”.

EU nations face a steeper 20 per cent.

But the EU has many instruments on the table to avoid a trade war with United States, including a rise in US LNG imports, a EU spokesperson said on Tuesday.

“We are absolutely ready to discuss and negotiate with the U.S. on energy,” she said.

The EU is preparing to retaliate to the first round of tariffs, reportedly drawing up a list of US goods to be hit with a 25% tariff. The bloc previously said it would deliver a “timely, robust and calibrated” response.

Rachel Reeves has appealed directly to families facing a financial squeeze from Donald Trump’s tariffs, with millions of savers’ pensions and other savings pots being blown apart by the trade war.

“I know that this is an anxious time for families who are worried about the cost of living, we have your backs,” she told MPs.

“And British businesses who are worried about what a changing world will mean for them… we have your backs too,” she added.