Prime Minister Sir Keir Starmer has affirmed the government’s commitment to supporting UK businesses facing increased trade pressures due to new international tariffs.
Writing in the Sunday Telegraph, Starmer emphasized the importance of industrial policy in safeguarding national economic interests. While reaffirming efforts to negotiate a trade deal with the United States, he indicated that state intervention may be necessary to protect key sectors of the economy.
“We stand ready to use industrial policy to help shelter British business from the storm,” Starmer wrote. “We simply cannot cling on to old sentiments when the world is turning this fast.”
The UK was recently affected by a 10% baseline import duty, with additional 25% tariffs placed on vehicle, steel, and aluminium exports. Broader global tariffs of up to 50% are expected to take effect on April 9, raising concerns across industries.
Automaker Jaguar Land Rover has temporarily paused US shipments while assessing the new trading environment. The company is one of many impacted by the changes, as businesses work to navigate cost implications and supply chain disruptions.
In response, the UK government is accelerating plans to boost domestic competitiveness and reduce exposure to external economic shocks. An industrial strategy initially planned for later this year may now be fast-tracked to provide timely support.
Starmer reiterated the UK’s intention to pursue a fair agreement with the US. “I will only strike a deal if it is right for British business and the security of working people,” he said, adding that all options remain under consideration.
The UK exported nearly £60 billion in goods to the US last year, including machinery, automobiles, and pharmaceuticals. A list of potential US imports for targeted tariffs has been released, covering approximately 27% of US goods entering the UK, selected to minimize domestic impact.
Over the weekend, Starmer engaged with global counterparts to explore coordinated responses. In a conversation with French President Emmanuel Macron, both leaders agreed on the importance of avoiding prolonged trade tensions.
Business Secretary Jonathan Reynolds stated that consultations will be held with UK companies to understand how potential measures could affect their operations. Starmer also noted that the government would seek to reduce trade barriers with other economies as part of a broader diversification strategy.
While trade tensions mount, some UK businesses are also adjusting to a new employer National Insurance contribution increase, which came into effect today.
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