1 week Ago By Evening Standard
Donald Trump ’s 10% tariffs on the UK will have an “economic impact,” says Sir Keir Starmer amid fears of thousands of job losses. Speaking to business chiefs in Downing Street, the Prime Minister stressed that the Government would “fight” to strike a trade deal with the US which was in Britain’s national interest to avoid the tariffs. However, bosses and workers across the country were waiting to find out how Trump’s US import levies would affect them.
Thousands of jobs in the UK car industry alone are feared to be under threat after Trump imposed a 25 per cent tariff on all motor imports into America. London’s FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.
4% to 8486.09 in the first few minutes of trading. Sir Keir Starmer said: “Last night the President of the United States acted for his country, and that is his mandate.
“Today, I will act in Britain’s interests with mine.” He added: “Clearly, there will be an economic impact from the decisions the US has taken, both here and globally.” Addressing business chiefs including AstraZeneca’s Pascal Soriot, BAE’s Charles Woodburn and Jaguar Land Rover’s Richard Molyneux, the Prime Minister emphasised: “Nobody wins in a trade war, that is not in our national interest.
“We have a fair and balanced trade relationship with the US. “Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship, they continue and we will fight for the best deal for Britain.” Trump confirmed on Wednesday sweeping import levies on countries across the world, hailing America’s “declaration of economic independence”.
In a speech from the White House rose garden, Trump said that from midnight in Washington, 5am Thursday in the UK, a 25% tariff would be imposed on all foreign cars imported to the US, a move which experts fear could cost 25,000 jobs in the British car industry. He indicated tariffs of 10% would apply to other products from the UK , the same level as the global “baseline” he was setting for countries around the world as part of his “reciprocal” measures from 5am on Saturday. He also hit out at “exorbitant” VAT rates, which he described as a barrier to US firms.
Other countries were hit by tougher tariffs, including the EU who are facing 20%, Japan who are facing 24% and China who are facing 34% tariffs. The European Union is finalising its first package of countermeasures. European Commission president Ursula von der Leyen said: “We are prepared to respond.
“We (Europe) are in this together: if you take on one of us, you take on all of us. Our unity is our strength.” Downing Street defended its approach of not threatening retaliatory tariffs, with a source saying: “We don’t want any tariffs at all, but a lower levy than others vindicates our approach.
“It matters because the difference between 10% and 20% is thousands of jobs.”.
