UK government is preparing for any impact of new US tariffs and with President Donald Trump about to announce his plans for new tariffs on imported automobiles and parts, they could hardly come at a more opportune time. UK Prime Minister Keir Starmer is apparently very conscious of the danger that the government should not deepen this into a trade war. Instead, he pushes back with reasoned calls for restraint and diplomacy.
Even as negotiations have progressed, UK officials have been adamant that the impacts of these tariffs on the UK economy would be devastating. Chancellor Rachel Reeves pointed out that 25,000 jobs now dangle in the wind. Even the threat of tariffs is enough to bring about serious economic consequences if they last long enough to take effect. David Miles, an economic expert, warned that the impact could be “pretty substantial” if tariffs remain in place for five years.
The UK government are being very pro-active in preparing for every possible scenario and not excluding any options from their response strategy. Starmer called for a joined-up effort to address the dire consequences wrought by these tariffs. The need for collaboration and strategic dialogue came through distinctly.
“I really do think it is not sensible to say the first response should be to jump into trade war with the US.” – Prime Minister Keir Starmer
The government should be held accountable. Most importantly, there are people pushing them to move forward with the “draft US trade deal” that the former Conservative government negotiated. These politicians claim that this lost opportunity would have left the UK far better equipped to weather the storm of today’s challenges.
Diplomatic efforts are still underway to broker an alternative deal to avoid tariffs altogether. Lord Mandelson has been taking the other tack—arguing behind the scenes at the White House. To that end, he’s met with powerful players such as JD Vance and Susie Wiles during these talks. Recent developments—including two deadly train derailments—have changed officials’ views on the matter. They now say they have a dimmer view of being able to find an accord before Trump’s Wednesday announcement.
Chancellor Reeves cautioned about stormy days to come. Tariffs on a global basis are set to bite severely even if the UK manages to negotiate a good deal with the US. She warned that global tariffs may reduce demand abroad, adding another layer to the increasingly complex global economy the UK finds itself in.
“I increasingly fear a deal won’t be good enough to avoid a global trade war.” – Sir Ed Davey
DUP MP Gavin Robinson pointed out that the UK’s trade terms are “fairly much in balance.” He cautioned of potential retaliatory action if EU moves adversely affect Northern Ireland. Robinson warned the government that it needs to either give Northern Ireland a pass on these types of measures or take action in return.
To say that political leaders have panicked and responded with a cacophony of different responses would be an understatement. Doing so, Starmer attacked Trump’s record on trade negotiations, emphasizing the need for safeguarding key industries like automotive production. His big calling card was the need to protect the British car industry. This protection serves our national interests and is critically important to their defense.
As negotiations in this area continue, the UK government is generally positive but on guard. PM Starmer once more emphasised the need for collaboration and communication when steering through these politically charged economic currents.
“A serious issue and we need to work together to resolve it.” – Prime Minister Keir Starmer
Now, pressure is growing due to Trump’s new disruptive, job-killing tariffs. These tariffs will be in addition to the forthcoming 25% levy on cars and car parts, which could change the expected trade balance between the US and UK. This, observers caution, is a moment that must be approached with extreme caution. Hastening into a trade war would heighten current strains and bring far more economic devastation.