Feeling “liberated” yet? Armed with a sprawling country-by-country chart, questionable arithmetic and a lax grip of economic principles, Donald Trump outlined his administration’s new tariff regime in the White House rose garden yesterday evening.
“Our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike”, the US president declared to an audience of media reporters and MAGA lackeys. Britain soon learned its fate: Trump’s scheme to right these historic wrongs involves a 10 per cent tariff on all UK goods and a 25 per cent duty on all vehicle imports.
The expert-defying move has prompted furious if predictable reactions the world over — from those countries faced with new Trump-branded trade barriers.
The British government’s consciously cautious response therefore, is proving something of an outlier. Addressing a roundtable of business leaders at Downing Street this morning, Keir Starmer reiterated the position he set out in the House of Commons yesterday: the UK will act with “cool and calm heads.”
He began: “Last night, the president of the United States, acted for his country. That is his mandate — today, I will act in Britain’s interests, with mine. I understand how important this is for your business as it is for the British people. So we move now to the next phase of our plan.”
He added: “Clearly, there will be an economic impact from the decisions the US has taken, both here and globally. But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head.
“I said that in my first speech as prime minister and that is how I govern, that is how we have planned and that is exactly what is required today.”
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Making a statement in the House of Commons this afternoon, business and trade secretary Jonathan Reynolds provided some further detail. The mooted US-UK economic deal, he declared, “would deepen our economic relationship on everything from defence, economic security, financial services, machinery, tech and regulation.
“There are clear synergies between the US and UK markets, and this is reflected in the fair and balanced trading relationship that already exists between our two countries.”
Reynolds added: “I have heard some members cling to the security of simple answers and loud voices.
“I understand the compulsion, but I caution members of this house to keep calm and remain clear-eyed on what is in our national interest, not to simply proclaim that we follow the actions of other countries.”
Crucially, the trade secretary confirmed that the government is now opening a consultation on possible retaliatory tariffs, in the event that an economic deal falls through. He said this approach will “enable the UK to have every option open to us in future.”
Reynolds continued: “We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response.
“This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.”
That is the government’s position. But alongside Trump’s tariffs has arrived a deluge of political advice from a range of sources — and not all of it helpful.
For what it is worth, the Conservative Party is generally aligned with the government in its initial response to Trump’s overnight proclamation. Kemi Badenoch took to X/Twitter this morning to condemn the new US tariffs, noting that if “we fail to learn the lessons of history we will be doomed to repeat them.”
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In a conniving aside however, the Tory leader added that her party stands “ready to help in the national interest”, boasting of its recent experience of negotiating trade deals. Badenoch served in Reynolds’ trade brief from 2022-2024, remember.
The Liberal Democrats have adopted a more overtly hostile footing, urging the UK to stand firm with its allies against Trump’s attempts to “divide and rule”. Picking up where he left off at PMQs yesterday, Ed Davey thinks the government should “bring our Commonwealth and European partners together in a coalition of the willing against Trump’s tariffs, using retaliatory tariffs where necessary and signing new trade deals with each other where possible”.
In a further press notice this morning, the Lib Dems called on the PM to launch a “Buy British” campaign to back businesses hit by Trump’s tariffs.
Davey has put his finger on one of the dilemmas that is defining Starmer’s response to Trump’s tariffs — and even his government generally. In a speech at the lord mayor’s banquet last December, Starmer rejected what he sees as the “false choice” between Europe and the United States — vowing to work with both in the national interest.
The calculation has shaped Starmer’s diplomatic strategy since. The prime minister’s self-styled status as a “bridge” between European and US interests involves cordial relations in both directions — something we witnessed, potentially infamously, during Starmer’s visit to Washington DC in February. That resulted in an unprecedented second state visit for the US president and a clean sweep of congratulatory front pages in the British press. That, of course, was several geopolitical eras and doses of reality ago.
In the wake of Trump’s tariffs, Starmer still believes this approach is tenable. The US has not pulled up its drawbridge yet, he contends. And so the PM is putting the majority of his eggs in the basket marked bespoke US-UK economic deal.
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But this too will come with potentially significant political sacrifices. Culture secretary Lisa Nandy appeared to suggest in the House of Commons this morning that the creative industries will not be damaged by a US-UK deal, following reports the government could offer concessions around AI regulation. But that is not a promise she is in a position to make, evidenced by her somewhat non-committal language.
On the broadcast round this morning, Reynolds expressed a more typical ministerial non-denial when prompted on food standards arrangements — which the US wants to relax to distend the UK single market with hormone-treated beef and chlorine-washed chicken.
In these terms, it is easy to see how a US-UK economic deal comes unstuck as negotiations progress — and/or the political problems the government will create for itself if it acquiesces to the Trump position.
Starmer’s “bridge” metaphor is worthy rhetoric then. But it cannot disguise the difficult decisions that await the government over the coming period — as the mainstream of global opinion errs definitely on the side of retaliatory tariffs.
As Labour grandee and former home secretary Lord Blunkett put it in the House of Lords this morning: “Difficult as these matters are, isn’t there a good rule of thumb for government to decide whose side they’re on?”
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Lunchtime briefing
Labour grandee says UK government must decide ‘whose side they’re on’ after Trump tariffs
Lunchtime soundbite
‘They claim to be the party of patriotism. I’ll tell you this, there’s nothing patriotic about fawning over Putin.’
— Launching Labour’s local elections campaign this morning, Keir Starmer accused Reform UK of “fawning over Putin”.
Now try this…
‘“Nowhere on Earth is safe”: Trump imposes tariffs on uninhabited islands near Antarctica’
Via the Guardian.
‘Europe slams ‘illegal’ Trump tariffs, vows unified response’
Politico reports.
‘Trump’s tariffs could have been worse — but they will still hurt’
If America’s 10% tariffs are not quickly replaced with a bespoke deal, the prime minister may live to regret his conciliatory tactics, writes The Times’ Steven Swinford. (Paywall)
On this day in 2023:
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