Keir Starmer has instructed heads of enterprise in Downing Road that “clearly there will be an economic impact” from US tariffs however that ministers would reply with “cool and calm heads”.
The prime minister gathered senior enterprise figures in No 10 after Donald Trump introduced he would introduce 10% blanket tariffs on imports from the UK, and 25% on automobile imports.
Ministers have taken coronary heart from the truth that 10% is the bottom fee imposed by the US and compares with 20% for the EU.
Starmer instructed enterprise officers that Trump “acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine.” The prime minister stated that whereas the tariffs had been “a challenge”, the UK was in a “better position than a lot of other countries from what was announced last night”.
Jonathan Reynolds, the commerce secretary, instructed broadcasters that the federal government wouldn’t retaliate instantly and was pursuing an financial cope with the US to take away Trump’s tariffs.
“I hope perhaps if we are successful there will be a template for other countries to resolve some of these issues,” Reynolds instructed Sky Information.
“There’s a set of complaints from the US on some of how the current global trading arrangements work. They won’t get their own way on all of that. But there are some things to talk about,” he stated. “And I do hope there’s a chance to take some lessons from that if we are successful for the wider world economy.”
The US treasury secretary, Scott Bessent, warned nations on Wednesday night time to not retaliate and stated that “as long as you don’t retaliate this is the high end of the number”.
Requested about Bessent’s remarks, Reynolds indicated that the UK was not planning to retaliate instantly however that ministers wouldn’t “rule anything out”.
Reynolds stated: “We in the UK will take any action we need to give ourselves the tools that we need to respond to announcements of this kind.
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“Whilst we have a chance of making the relationship between the UK and US even stronger than it is, the message I get very strongly from businesses is remain at the table, don’t overreact, stick with the calm-headed approach the government has had to date and we’re going to do that.”
The commerce secretary struck an optimistic tone in regards to the prospect of hanging an financial cope with the US, saying he “absolutely” believed it may very well be completed. “We have been able to progress talks on a range of areas on a timescale which to be honest has delivered in days and weeks more progress than we’ve had in years,” he instructed LBC.
Reynolds revealed, nevertheless, that Trump’s group had raised objections to UK meals security requirements, reigniting long-running tensions over the UK’s ban on US chlorine-washed hen and hormone-treated beef.
“We have a food standards regime which we’re very committed to in the UK which they have some objections to. So they put a number of factors into this,” Reynolds instructed BBC Breakfast.
