Sir Keir Starmer could hike taxes on American staples including Harley Davidsons, Jack Daniel’s whiskey and Levi’s jeans if Donald Trump targets the UK with tariffs.
The prime minister has been urged to “Trump-proof” Britain after the president-elect overnight threatened to unilaterally impose massive levies on imports to the US on his first day in office.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 per cent Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Mr Trump said on his Truth Social platform.
During the election, Mr Trump unveiled plans to impose 20 per cent tariffs on all imports to the US, with the levy rising to 60 per cent for Chinese imports.
And while Mr Trump did not directly threaten to target Britain’s trade with the US overnight, Sir Keir’s government is reportedly ready to retaliate if he does.
Officials have told ministers that they can revive a package of EU measures against the US without having to launch an investigation, Politico reported.
The tariffs were carried over after Britain left the European Union, having initially been placed on US goods in Mr Trump’s first term in response to his levies on European steel.
They targeted products synonymous with the US, which also included those made by Calvin Klein, Estée Lauder and American staples such as peanut butter.
The report came as the Liberal Democrats called for the PM to “Trump-proof” the economy ahead of his inauguration.
Lib Dem Treasury spokesman Daisy Cooper said: “Many will be extremely worried about the potential ramifications for the UK economy due to any kind of trade war between the United States and these countries.
“After years of Conservative economic vandalism, people across the nation have endured a brutal cost of living crisis and we are now set for yet another difficult winter with energy bills rising again.
“The new government needs to put forward urgent plans to Trump-proof the economy and reassure the public that we will not see the same kind of spiralling prices that we have all experienced in recent years.”
And, piling on the pressure in the Commons, Liberal Democrat EU spokesman James MacCleary said: “President-elect Trump’s confirmation of tariffs on Canada, one of the US’s closest allies, raises serious concerns about his willingness to honor the US-UK relationship.
“If this is the future of US relations with their closest partners, does the minister agree that closer cooperation with the EU on defense and trade are now urgently needed, including access to the European customs union and a defense pact with the EU, going beyond the recent agreement with Germany?”
Responding, Europe minister Stephen Doughty said: “We have a thriving trading and investment relationship with the US… we look forward to working with president-elect Trump in office.”
With the prospect of a brutal global trade war looming, critics of the UK’s current Brexit deal have said the country needs to rejoin the EU’s customs union, single market or the bloc itself to shield itself from the devastating fallout.
Mike Galsworthy, chair of the European Movement, said Mr Trump’s election makes “international waters on trade and security much more choppy”, adding: “That means the UK is better off closer to the large harbour of the EU.”
A spokesman for the Department for Business and Trade said: “We look forward to working closely with President Trump to improve UK-US trading relations to support businesses on both sides of the Atlantic.”
