PM Keir Starmer plans support for UK economy following Trump's new tariffs
The government plans emergency reforms and tax breaks for struggling sectors, while continuing negotiations with the US for a favorable trade deal.
UK Prime Minister Keir Starmer said he’ll announce measures this week to support Britain’s economy and businesses amid the threat posed by Donald Trump’s tariffs.
Writing in the Telegraph, Starmer said, “The world as we knew it has gone. We must rise to meet the moment.”
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Also read: UK PM Keir Starmer in talks with world leaders as stocks fall after Trump’s tariffs
The US president last week announced sweeping global tariffs, including a 10% levy on British goods, despite a weeks-long push for an economy deal by the UK government. While the levy was half that handed to the European Union, it was enough to threaten thousands of jobs and potentially wreck the UK’s hopes of boosting economic growth and battling its way out of stagnation.
“This week, the Government will do everything necessary to protect Britain’s national interest,” Starmer wrote. Labour will “turbocharge” plans to improve domestic competitiveness and stands “ready to use industrial policy to help shelter British business from the storm.”
Downing Street will need to move quickly as companies are already grappling with the fallout from Trump’s tariffs. UK automaker Jaguar Land Rover on Saturday said it’s pausing shipments of its cars to the US as it looks at ways to address the new trading terms.
Measures that could be unveiled as early as this week may include emergency reforms to regulation that will cut red tape as well as tax breaks for struggling sectors, the Telegraph reported separately. The government is also planning to bring forward plans to water down electric vehicle targets to ease the burden of net zero on the car industry, according to the newspaper.
Speaking on Sunday, Chief Secretary to the Treasury Darren Jones confirmed the government will this week unveil new plans to support industry following close engagement with British businesses. He declined to elaborate on what those steps could be.
In the face of Trump’s tariffs, the UK is continuing negotiations with the Americans and must “keep calm and fight for the best deal,” Starmer wrote. “I will only strike a deal if it is right for British business and the security of working people. And I will continue to make the case for free and open trade, because turning our back on that now will be a grave mistake.”
While the UK isn’t “happy” about the tariffs contrary to claims by Trump, Jones said that countries responding with their own levies isn’t the right strategy.
“We have been clear that we are disappointed by the tariffs. We don’t think a trade war where all of these retaliatory tariffs are in place is good for anyone,” he said on the BBC. “We think the way through that is to identify the points of friction as we want to lift those to improve trade.”
