BRITISH prime minister Sir KeirStarmer has said he is prepared to use industrial policy to “shelter British business from the storm”,following United States President Donald Trump's wave of new tariffs.
Writing in the Sunday Telegraph, Starmer said he would continue to seek an economic deal with the US to avoid some tariffs, but mooted State intervention to protect the national interest.
“Some people may feel uncomfortable aboutthis — the idea the State should intervene directly to shape the market has often been derided,” he said.
“But we simply cannot cling to old sentiments when the world is turning this fast.”
Britain was among countries hit with lowest import duty rate of 10%, but the government is taking steps to strengthen alliances and reduce barriers to trade.
In addition to the 10% tariffs, a 25% tariff has been put on UK car exports, as well as steel and aluminium products.
Many nations will face much higher tariffs, starting on April 9.
“This week we will turbocharge plans that will improve our domestic competitiveness, so we’re less exposed to these kinds of global shocks,” Starmer wrote.
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“We stand ready to use industrial policy to help to shelter British business from the storm.”
He has not ruled out further tax rises in the autumn but pointed out that the government has resisted doing so in its spring statement.
Over the weekend the prime minister has spoken to several world leaders to discuss issues including how to respond to the US tariffs.
Sir Keir spoke to French President Emmanuel Macron on Saturday with the pair agreeing that a trade war was “in nobody's interests” but that “nothing should be off the table”.
In the Telegraph, he said he would take a “cool-headed” approach to the tariffs rather than immediately retaliating, but he reiterated that “all options remain on the table.”
On Wednesday last week, the UK published a 400-page list of US goods it could include in any possible tariff response. Business Secretary Jonathan Reynolds told MPs the government will look at how retaliatory tariff measures against US products could affect British firms.
The list covers 27% of imports from the US — chosen because they would have a “more limited impact” on the UK economy, the Department for Business and Trade said.
The UK exported nearly £60bn worth of goods to the US last year, mainly machinery, cars and pharmaceuticals —making it one of the most important markets for thousands of British businesses.
On Saturday, Jaguar Land Rover announced it would “pause” all shipments to the US as it works to “address the new trading terms” after tariffs were imposed earlier this week.
Conservative leader Kemi Badenoch has urged the prime minister to strike a “deep and meaningful trade deal” with the US, that “delivers growth without compromising on standards”.
Liberal Democrat leader Sir Ed Davey said the UK should make trade deals with other countries to show “bully Trump” that there are alternatives to trading with the US.
