Prime Minister Sir Keir Starmer has told business chiefs that “clearly, there will be an economic impact” from Donald Trump’s tariffs, but the Government would respond with “cool and calm heads”.
Mr Trump has slapped a 10% tariff on US imports of UK goods as he confirmed sweeping import levies on countries across the world, hailing America’s “declaration of economic independence”.
Sir Keir told business chiefs in Downing Street that the US President “acted for his country, and that is his mandate.
“Today, I will act in Britain’s interests with mine.”
He said the UK was “prepared” and that “one of the great strengths of this nation is our ability to keep a cool head”.
The Business Secretary said tariffs on the UK are a “disappointment” and “a challenge”, but that the UK is in a “better position than a lot of other countries from what was announced last night, but I was still disappointed.”
A timeline for the UK to seal an economic deal to mitigate tariffs is “largely in the gift of the US”, Jonathan Reynolds told Times Radio.
Downing Street had suggested they had been vindicated in their approach to negotiating with the US in the hope of securing an exemption. The 10% tax facing UK goods is half that facing the EU.
In a speech from the White House rose garden, Mr Trump confirmed that from midnight in Washington, 5am Thursday in the UK, a 25% tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.
And he indicated tariffs of 10% would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world as part of his “reciprocal” measures from 5am on Saturday.
Sir Keir addressed business chiefs including AstraZeneca’s Pascal Soriot, BAE’s Charles Woodburn and Jaguar Land Rover’s Richard Molyneux.
He said that as the Government moved “to the next stage of our plan”, the “decisions we take in coming days and weeks will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table”.
“Clearly, there will be an economic impact from the decisions the US has taken, both here and globally.
“But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head.”
He said he would “fight” to secure a deal with the US in the hope of mitigating the impact of the tariffs and that “nobody wins in a trade war”.
The Business Secretary has said the 10% tariff on US imports of UK goods will not come on top of the 25% imposed on the automotive industry.
“As we understand it, those tariffs are not additive,” Jonathan Reynolds told BBC Breakfast.
The tariffs the UK has in place on US goods is “about 4%” but the US is “adding in other policy issues to that equation”, he said.
