In the midst of looming US tariffs on imports, Prime Minister Keir Starmer has emphasized a “pragmatic” approach to avoid escalating into a trade war. The UK government is bracing for the announcement of new levies on goods entering the US, with President Donald Trump set to unveil his plans from the White House.
Despite ongoing talks aimed at securing a deal to bypass tariffs, officials are increasingly pessimistic about reaching an agreement before Trump’s announcement. Sir Keir Starmer has stated that his government is prepared for all eventualities and will consider all options in response to the tariffs.
The impending tariffs will add to the existing 25% levy on car and car parts, which has already been announced by the US president. Diplomatic efforts are continuing, with UK ambassador Lord Mandelson holding meetings in the White House to negotiate with key figures like JD Vance and Susie Wiles.
During Prime Minister’s Questions, Conservative leader Kemi Badenoch criticized the government for making the UK economy “fragile” and failing to secure a trade deal with the US. Badenoch highlighted the risk of job losses in the British car industry and pressed the prime minister for concrete actions to protect it.
In response, Sir Keir Starmer defended the government’s approach, citing ongoing “constructive” talks and a commitment to a calm and pragmatic strategy. He also pointed out Badenoch’s previous failure as trade secretary to secure a trade deal with the US.
Liberal Democrat leader Sir Ed Davey echoed concerns about the potential consequences of tariffs, urging the prime minister to collaborate with other countries to resist Trump’s actions. Sir Keir emphasized the importance of avoiding a knee-jerk reaction and cautioned against plunging into a trade war with the US.
Northern Ireland MPs raised specific concerns about how tariffs could impact their constituencies post-Brexit, particularly in light of potential EU retaliatory tariffs. The prime minister acknowledged the seriousness of the issue and stressed the need for a collaborative resolution.
As the debate around tariffs unfolds, David Miles from the Office of Budget Responsibility warned of the substantial impact on the UK economy if tariffs remain in place for an extended period. Chancellor Rachel Reeves emphasized the importance of not jeopardizing potential economic deals with the US while remaining mindful of global tariffs that could dampen overseas demand.
Overall, the UK government’s response to US tariffs reflects a delicate balancing act between economic protectionism and diplomatic negotiation. As uncertainties linger, the focus remains on navigating these challenges with a measured and strategic approach to safeguard the interests of the British economy.
