Keir Starmer says he ‘reserves the suitable’ to retaliate towards Donald Trump’s tariffs
The Prime Minister said his Government was involved in ongoing discussions with the White House aimed at “mitigating the impact” of any levies but that ultimately “our national interest has to come first”.
The UK reserves the right to retaliate against Donald Trump’s tariffs, Keir Starmer has said after the US president slapped a 25% import tax on cars.
The Prime Minister said his Government was involved in ongoing discussions with the White House aimed at “mitigating the impact” of any levies but that ultimately “our national interest has to come first”.
The US is the second largest export market after the European Union for cars built in the UK.
Asked whether the UK reserves the right to respond to tariffs during a visit to Yorkshire, he said: “Yes, of course.
“Obviously, any tariffs are concerning and we’re working hard with the industries and sectors likely to be impacted.
“None of them want to see a trade war, which is why we’re engaged in discussions with the United States about mitigating the impact of tariffs.
“Now, that’s what we’re working hard on, but in answer to your question, yes – in the end, our national interest has to come first, which means all options are on the table.”
Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.
Ministers have said they will take a “pragmatic approach” towards the threat of tariffs – hoping to secure exemptions in ongoing talks with White House officials.
Industry minister Sarah Jones spoke with car industry leaders to talk tariffs yesterday (FRI).
A Government spokesperson said the minister listened to the attendees’ views on trade with the US, and they expressed their support for the Government’s approach.
They added that the US is an “indispensable ally and one of our closest trading partners, with £1.2 trillion invested in each other’s economies”.
The import tax on cars is on top of a series of reciprocal tariffs set to come into effect on April 2, which could include a general 20% levy on UK products in response to the rate of VAT.
Sir Keir’s reluctance to hit back with the threat of reciprocal tariffs is driven by fears of the economic harm a trade war would cause.
In its assessment of the UK economy, the budget watchdog warned a full-blown tariff war with the US could wipe 1% off gross domestic product next year and derail Chancellor Rachel Reeves ‘ hopes of balancing the books, forcing her to implement more cuts or tax hikes.
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That “worst-case scenario” would come about if Mr Trump imposed 20% tariffs on British goods and the UK reciprocated in kind.
Shares in UK luxury carmaker Aston Martin dropped sharply when stock markets opened on Thursday morning.
The firm, which is listed on the London Stock Exchange, saw its share price fall about 6% shortly after opening.
Jaguar Land Rover could be one of the UK vehicle manufacturers most affected by tariffs.
Its latest annual report shows 22% of its sales were to North America in the year to the end of March 2024.
