Starmer vows to protect UK businesses from tariff 'storm'
PA MediaThe prime minister has said he is prepared to use industrial policy to "shelter British business from the storm" expected from US President Donald Trump's wave of tariffs.
Writing in the Sunday Telegraph, Sir Keir Starmer said he will continue to seek a trade deal with the US to avoid some tariffs, but mooted state intervention to protect the national interest.
"Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided," he said. "But we simply cannot cling on to old sentiments when the world is turning this fast."
The UK was among nations hit with a 10% "baseline" import duty this week.
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 of up to 50%, starting on 9 April.
Trump has said his intervention was aimed at encouraging US consumers to buy more American goods and boost the domestic economy.
But the announcement - and retaliatory tariffs from countries such as China - led to stocks plunging more than 5% amid fears of a global recession.
Jaguar Land Rover announced on Saturday it would "pause" all shipments to the US as it works to "address the new trading terms".
Sir Keir wrote: "This week we will turbocharge plans that will improve our domestic competitiveness, so we're less exposed to these kinds of global shocks.
"We stand ready to use industrial policy to help shelter British business from the storm."
The prime minister admitted some may feel "uncomfortable" with the government intervening in the economy, but said the UK could not "cling to old sentiments when the world is turning this fast".
He has not ruled out further tax rises in the autumn, but pointed out the government had resisted doing so in its Spring Statement.
An industrial strategy promised in Labour's election manifesto is due to be unveiled this summer. Elements of that could now be adapted and brought forward to aid UK firms.
In the Telegraph, Sir Keir reiterated the government's position that it would "keep calm and fight for the best deal" with the US, but said "all options remain on the table".
He added: "I will only strike a deal if it is right for British business and the security of working people."
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".
The UK exported nearly £60bn worth of goods to the US last year, mainly machinery, cars and pharmaceuticals.
On Wednesday, the government published a 400-page list of US goods it could include in any possible tariff response. Business Secretary Jonathan Reynolds told MPs the government would consult with businesses on how retaliatory tariffs could affect them.
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.
Sir Keir said he would also seek to reduce trade barriers with other economies to limit the impact of US tariffs on UK exports.
Over the weekend, the prime minister spoke to several world leaders to discuss how to respond to the US tariffs.
In a phone call with French President Emmanuel Macron on Saturday, the pair agreed a trade war was "in nobody's interests" but "nothing should be off the table".
But both the Conservatives and Liberal Democrats say UK families and businesses will first feel the impact of the National Insurance hike for employers that takes effect today.