Sir Keir Starmer has pledged to “do everything necessary” to protect the UK’s national interest in the wake of Donald Trump’s tariffs, as he said that ministers are “ready to use industrial policy” to help shelter businesses.
The Prime Minister said that “these new times demand a new mentality”, after the 10% levy on British imports into America came into force.
It comes as Jaguar Land Rover announced it would “pause” shipments to the US, as businesses are grappling with the new taxes.
The car manufacturer said on Saturday that it was working to “address the new trading terms” and is looking to “develop our mid- to longer-term plans”.
The 10% tariff on goods imported into America from around the world kicked in on Saturday morning, while a 25% levy on foreign car imports came into force on Thursday.
Writing in the Sunday Telegraph, Sir Keir said that when it comes to tariffs, “the immediate priority is to keep calm and fight for the best deal”.
The Prime Minister said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, and added: “We stand ready to use industrial policy to help shelter British business from the storm.”
It is thought that a number of announcements could be made soon as the Government looks to encourage growth.
The FTSE 100 had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.
The Prime Minister wrote: “This week, the Government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”
Sir Keir has been taking calls from foreign leaders through the weekend to discuss the tariff changes, and shared his “concerns” about the impact on global economics and security in a call with Emmanuel Macron.
Issuing a readout of the conversation with the French President, a Downing Street spokesperson said: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.
“The Prime Minister and president also shared their concerns about the global economic and security impact, particularly in South-East Asia.”
While the UK is set to continue at the 10% baseline, other nations are due to see their tariff rates increase further next week.
Some of the highest tariff rates have been applied to nations in South-East Asia, with imports from Vietnam will be subject to a 46% tariff, while those from Cambodia will face a 49% rate.
Imports from France will see a 20% tariff, the rate that has been set for EU nations.
Sir Keir’s call with his French counterpart came after separate conversations with the prime ministers of Italy and Australia on Friday.
Mr Trump has warned Americans that the tariffs “won’t be easy”, but urged them to “hang tough”.
In a post on his TruthSocial platform, the president said: “We are bringing back jobs and businesses like never before. Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”
