Sir Keir Starmer commits to safeguarding UK businesses from Trump’s tariff ‘storm’ | UK News

Sir Keir Starmer has stated that his administration is prepared to implement industrial policies to “protect British enterprises from the upheaval” following the activation of Donald Trump’s new 10% tariff.

The United Kingdom was among several nations impacted by the lowest import duty rate after the president’s declaration on April 2 – which he termed ‘Liberation Day’, while other countries, including Vietnam, Cambodia, and China, face significantly higher tariffs from the U.S.

However, a global trade conflict could negatively impact the UK’s open economy.

The prime minister remarked that “these new times require a new mentality” after the 10% tax on British imports to America came into effect on Saturday. Additionally, a 25% tariff was imposed on all foreign car imports effective Thursday.

This follows an announcement from Jaguar Land Rover that it would “pause” shipments to the U.S. for a month as companies adjust to the new tax structure.

On Saturday, the automotive manufacturer stated it was working to “adapt to the new trading conditions” and was focused on “developing our mid to long-term strategies”.

Discussing the tariffs, Sir Keir emphasized that “our immediate aim is to stay composed and advocate for the best possible agreement”.

In an article for The Sunday Telegraph, he mentioned that in the coming days “we will accelerate initiatives that will enhance our domestic competitiveness”, adding: “We are prepared to employ industrial policy to shield British businesses from the turmoil.”

It is anticipated that several announcements may be forthcoming as ministers seek to stimulate growth.

Increase in NI contribution rates for employers

Starting Sunday, the rate of employer national insurance contributions (NICs) rose from 13.8% to 15%.

At the same time, businesses will incur higher costs as the government has lowered the income threshold at which companies begin paying NICs from £9,100 to £5,000.

Additionally, the FTSE 100, consisting of major UK companies, suffered its worst trading day since the onset of the pandemic on Friday, with banks being among the hardest hit.

Sir Keir remarked: “This week, the government will take all necessary measures to safeguard Britain’s national interests. As the global economic landscape shifts, our unwavering focus on delivering for Britain remains. These new times necessitate a new mentality.”

UK protected from steep tariff increases

Countries deemed “worst offenders” are facing some of the highest tariffs, particularly in Southeast Asia. Cambodia will be subjected to a 49% tariff, Vietnam a 46% tariff, and Chinese imports will incur a 34% tariff.

Imports from France will face a 20% tariff, which has been established for European Union member states, taking effect on April 9.

Further reading:
Red wall on Wall Street – yet Trump remains steadfast
What will be the UK’s response to Trump’s tariffs?

Sir Keir has been in discussions with foreign leaders over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, and Australian Prime Minister Anthony Albanese, addressing the tariff adjustments.

A spokesperson for Downing Street commented on the conversation between Sir Keir and Mr. Macron: “They concurred that a trade war would be detrimental to everyone involved, with no option remaining off the table while ensuring businesses remain informed of updates.”

“The prime minister and president expressed their mutual concerns regarding the global economic and security implications, particularly in Southeast Asia.”

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Trump’s caution

Mr. Trump cautioned Americans that the tariffs “will not be straightforward,” yet he encouraged them to “remain resilient”.

In a statement on his Truth Social platform, he proclaimed: “We are restoring jobs and businesses at an unprecedented pace.”

“So far, over FIVE TRILLION DOLLARS OF INVESTMENT, and the figure continues to grow!

“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL TRIUMPH. STAY STRONG, though it won’t come easily, the eventual outcome will be historic.”