‘I’ll shelter Britain!’ Keir Starmer prepares ‘turbocharged’ plan to bounce back from Donald Trump’s tariff war

Ben Habib: Trump’s Tariffs Pressure UK to Pivot from EU to US, Challenges Starmer’s EU Ties
GB News
Eliana Silver

By Eliana Silver


Published: 06/04/2025

- 08:38

The Prime Minister vowed to 'do everything necessary' to protect the national interest and safeguard people’s jobs

Sir Keir Starmer has promised to “help shelter British business from the storm” caused by US tariffs, as he prepares to push for state intervention to support the industries hardest hit by the economic fallout.

The Prime Minister vowed to “do everything necessary” to protect the national interest and safeguard people’s jobs.


In an article for The Telegraph, Starmer also reiterated his support for “free and open trade,” despite America’s move towards protectionism.

Starmer’s response comes in light of US President Donald Trump’s tariff announcements, with Jaguar Land Rover suspending all exports to the US and JP Morgan warning of a 60 per cent chance of a global recession.

Starmer

The Prime Minister has vowed to “do everything necessary” to protect the national interest and safeguard people’s jobs

PA

Barclays has revised its UK growth forecast for the year, lowering it from 0.7 percent to 0.5 percent.

Despite the backlash, Trump defended his tariffs, asserting: “We will win.”

Downing Street is expected to unveil a range of emergency measures this week to assist companies and stimulate growth in response to the US president’s trade war.

On Wednesday, Trump announced broad import taxes on foreign countries, including a 10 percent tariff on goods from Britain.

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This prompted retaliatory actions from several nations and led to the steepest declines in British and American stock markets since the pandemic.

Starmer wrote: “We stand ready to use industrial policy to help shelter British business from the storm.

“Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided.

“But we simply cannot cling on to old sentiments when the world is turning this fast.”

Trump with tariff chart

On Wednesday, Trump announced broad import taxes on foreign countries, including a 10 percent tariff on goods from Britain

REUTERS

The measures may include emergency reforms to reduce regulatory red tape, along with targeted tax breaks to support struggling sectors.

These interventions are expected to be announced as early as this week.

Downing Street is already preparing to introduce plans to ease the electric vehicle targets, aiming to reduce the strain of net zero requirements on the car industry.

Food and drink companies - especially those in the Scotch whisky sector -along with chemical producers and steelmakers, will also be among the hardest hit by the tariffs.

Jaguar Land Rover's decision on Saturday to halt all shipments to the US was in direct response to a 25 per cent tariff on car imports imposed by President Trump.

The company, which derives nearly a quarter of its sales from the US, employs 38,000 people in the UK, with plants located in the West Midlands and Merseyside.

This move comes amid growing concerns that the global trade war ignited by the White House could lead to significant job losses in the UK automotive industry.

Cars represent the UK’s largest export to the US, with America making up £8.3billion in sales during the first three quarters of last year.

The automotive sector employs over 198,000 people in manufacturing, and approximately 813,000 jobs are supported across the wider industry.

Downing Street is currently in talks with the White House and remains optimistic about securing a trade deal with the US that would exempt the UK from the president’s broad tariffs.

On Saturday evening, Elon Musk raised hopes of a potential reprieve by suggesting the idea of a transatlantic zero-tariff free trade zone between Europe and the US.

However, Starmer said regardless of the outcome of discussions, the world has changed and “old assumptions can no longer be taken for granted”.

Jaguar Land Rover

Jaguar Land Rover's decision on Saturday to halt all shipments to the US was in direct response to a 25 per cent tariff on car imports imposed by Trump

GETTY

The Prime Minister is speeding up plans for domestic reforms, pledging to go “further and faster” on overhauling Britain’s business regulation and planning laws.

He wrote: “This week we will turbocharge plans that will improve our domestic competitiveness, so we’re less exposed to these kinds of global shocks.”

“The Government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not.”

Downing Street has drawn up a 417-page list of US goods it is ready to hit with import taxes, including Harley-Davidson motorbikes and bourbon whiskey.

Starmer said that “all options remain on the table,” but it is believed he aims to avoid retaliatory measures that could further damage British businesses.

He cautioned that the UK would be making “a grave mistake” if it turned its back on free trade, especially as the EU and China prepare to impose counter-tariffs on the US.