Keir Starmer said he was keeping ‘all options on the table’ to protect the UK from being hammered by Donald Trump’s trade tariffs, which will hit British businesses and consumers
US tariffs: Keir Starmer vows to ‘fight’ for trade deal
Keir Starmer has warned against “jumping straight into a trade war” in response to Donald Trump’s explosive tariffs.
But the Prime Minister said he was keeping “all options on the table” to protect the national interest as the UK put the White House on notice. Today, the Government launched a four-week “request for input” from businesses on hitting the US with retaliatory tariffs – setting a May 1 deadline for a decision.
Trade with the US is worth £315 billion, second only to that with the European Union, which is worth £791 billion. Some 2.5 million jobs in the UK and US are linked to trade between the two nations.
Speaking at an event in the East Midlands, Mr Starmer said: “A trade war is bad for working people and bad for our businesses, and I don’t think we should jump straight into a trade war. I think it is better if we’re able to negotiate a better outcome and that’s what we are attempting to do.”
UK negotiators have been scrambling to agree a deal with the US to lessen the impact of the swingeing tariffs but efforts to get it over the line before Mr Trump unveiled his plans fell short. Insiders are hopeful an agreement can be struck, which is expected to focus on areas like technology.
Mr Starmer said the world was “entering a new era” after Mr Trump’s tariff blitz sent stock markets reeling across the globe. The FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.4% in the first few minutes of trading.
The UK is facing a 10% hit on exports of goods to the US, as well as blanket 25% tariffs on cars, and steel and aluminium. While the move presents a nightmare for the Government, there was some relief that the UK was not singled out for worse. The European Union’s rate was 20%, Japan’s was 24% and Chinese goods arriving in the US will be hit with a 54% tariff.
Mr Starmer said he would not tell others how to respond to the tariffs, when asked if he would urge the EU to take a less “combative approach” to avoid a trade war. He said: “Well, in my experience, it’s not wise to go around telling other countries what they should or shouldn’t do.
“Everybody needs to act in their own best interest. And no doubt they will do so. My job is to lead the United Kingdom through this focused on our best interest.”
Responding to critics who have urged him to take a tougher line with Mr Trump, he said: “Jumping straight into a trade war – I know others are saying why don’t you go into a trade war on day one, from the get go – I don’t think that would be in our national interest. But I do think we do have to preserve our rights, which is why we are keeping all options on the table.”
Earlier, the PM told business leaders from some of the UK’s biggest firms: “Clearly, there will be an economic impact from the decisions the US has taken both here and globally.”
Meanwhile, Business Secretary Jonathan Reynolds said he was consulting on the implications for British businesses of “possible retaliatory action”. He told MPs: “We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.”
Mr Reynolds claimed the Government’s approach to handling Mr Trump had been “vindicated” as the UK escaped the worst of the US President’s wrath. He said: “No country was able to secure an exemption from these announcements, but the UK did receive the lowest reciprocal tariff rate globally. And though this vindicates the pragmatic approach this Government has taken, we know that while these tariffs are still being levied, the job is far from done.
“We are, of course, disappointed by the increase in tariffs on the UK and on other countries around the world. The impact will be felt amongst all trading nations.” He said talks with the US on an “economic deal” are still ongoing, which would “not just avoid the imposition of significant tariffs but would deepen our economic relationship, on everything from defence, economic security, financial services, machinery, tech and regulation”.