Keir Starmer Warns Trump Tariff Fallout Won’t Be Fixed With ‘Any’ Trade Deal

Posted on 09/04/2025 by Boris Clair

Keir Starmer has warned that it is not “enough” for the UK to secure “any” US trade deal in a bid to get reduced tariffs, as the global economic turmoil rumbles on.

Donald Trump announced global tariffs on foreign goods going into the US on April 2.

The UK was hit with only the “base rate” 10% tax on its imports, but it came on top of the global levy of 25% on cars and steel products.

Still, the Labour government have avoided publicly condemning the dramatic move from the White House.

Starmer is hoping to secure a trade deal with the US before May 1, which – ideally – would see the UK secure exemptions to the tariffs in exchange for some British concessions.

If the deal is not across the line by the end of the month, Starmer has warned he may look to issue reciprocal tariffs on the States.

Speaking on Wednesday, ITV News’ Robert Peston asked the prime minister just what he wanted out of the tariff chaos.

He said: “Do we have to have 10% forever, you know, you’re obviously keen to get the 25% on cars and steel down, but is the 10% permanent?”

“Look, I don’t know,” Starmer replied.

“We are negotiating and we hope to improve the situation, but what I mean by this is that simply thinking that any change in the rates or any deals is going to be enough, to my mind is wrong.

“Because just as we’ve done with defence and security, where we’ve recognised it’s a changing world, we’ve got to step up and act differently.

“In that case with defence spend, coordinating better across Europe, so too with trade and the economy.”

While emphasising this is not a “passing phase” the world is going through, he also refused to call on Trump to reduce the 104% levy on China.

He said: “I’m not going to engage in diplomacy through the media, but I mean I’ve been clear that throughout that a trade war is in nobody’s interest.”

Peston tried again, and asked: “For America, this looks like a Liz Truss-style financial crisis.

“The price that America pays to borrow is soaring and we’ve been infected.

“I don’t know if you’ve been told this, but the government’s borrowing costs are now the highest since 1998. He’s harming us. Surely you’ve got to say to him, ‘stop, change course’.”

But Starmer still refused to make any public statement against Trump’s economic policy.

He also told ITV News he would not follow Truss’s example of “putting to one side rules and institutions, checks and balances” by changing the government’s own fiscal rules.

When Labour got into office, chancellor Rachel Reeves promised she would not borrow for day-to-day spending.

Despite the growing pressure on the struggling British economy, he said these are still “ironclad” ideas.

He added: “Those fiscal rules are foundational to the stability that we brought to our economy, so we go ahead in that calm way, obviously we’re talking to the US to see what we can do to mitigate the situation.”

Starmer said it was important to be “calm” and “pragmatic”, focus on “turbocharging” the UK economy and “talking to other world leaders about lowering trade barriers across the world”.

He rejected any suggestion the public spending may have to be cut again or taxes may have to rise in the autumn as a result of the struggling markets.

“I don’t accept the proposition that it’s inevitable things will happen in six months’ time,” the PM said.

Tariff Tensions Fuel Campaign To Stop Trump’s Second State Visit

Posted on 04/04/2025 by Boris Clair

As a piece of political theatre, it took some beating.

Sitting down in the Oval Office for his first face-to-face meeting with Donald Trump since his re-election, Keir Starmer reached into the inside pocket of his suit and produced an envelope.

The prime minister could barely contain his excitement as he told the president: “It is my pleasure to bring from His Majesty the King a letter – he sends his best wishes and his regards, of course – but he also asked me to bear this letter and bring it to you.”

In it, King Charles invited Trump to come to the UK for a second state visit, an unprecedented honour for a sitting president.

“The answer is yes,” Trump told the PM. “I look forward to being there and honouring the King.”

But if Starmer hoped that appealing to Trump’s love of the Royal Family would spare the UK when it came to his “reciprocal” tariffs, he was very much mistaken.

The president confirmed on Wednesday that British imports into the US will be slapped with a 10% tax – on top of the 25% charges already being applied to cars and steel products.

And while that was less than the levy imposed on many other nations, and the EU, it still has the potential to cause huge damage to the UK economy and send unemployment soaring.

HuffPost UK can reveal that Trump’s actions – which have also sent markets around the world into freefall and increased the chances of a global recession – have breathed new life into the campaign to block his state visit.

Thousands of voters have so far backed a campaign set up by the Stop Trump Coalition in the wake of the tariff announcement, filling in an online form to lobby their local MP.

“Donald Trump has started a global trade war,” say the group. “This threatens to cause a new worldwide recession. It can’t be allowed to succeed.

“The Starmer strategy of trying to be Trump’s friend isn’t working. It is only holding the government back from responding to Trump’s tariffs, or criticising the other outrageous actions he takes daily.

“It is time to cancel the visit and stand up for ourselves.”

More than 200,000 people have also signed a “no second state visit for Trump” petition organised by 38 Degrees.

While Trump’s invitation was officially a decision for the King alone, everyone knows that No.10 was the driving force behind it.

This has allowed Downing Street to insist that it is ultimately a decision for Buckingham Palace when – or if – the visit does end up going ahead.

A poll by Ipsos taken before Trump’s tariff announcement showed that the British public are evenly split on whether we should be rolling out the red carpet for him once again. Some 46% were in favour, with 44% against.

Keiran Pedley, director of UK politics for the company, said Starmer now “faces a delicate balancing act”.

“The US president is unpopular in Britain and the public were already split down the middle on whether the visit should go ahead last month.,” he told HuffPost UK.

“It is hard to see how his announcements on tariffs would have made the visit more popular. However, there are political and diplomatic realities to contend with, and Starmer will be keen to get the balance right.”

Trump unveiled the tariffs he was slapping on countries around the world at a White House press conference.

The PM does have plenty of political cover at Westminster, however, with even parties which are instinctively hostile to Trump refusing to join the growing clamour for the state visit to be cancelled.

Calum Miller, the Lib Dems’ foreign affairs spokesperson, said: “Trump has turned his nose up at the special relationship between the UK and the US by slapping the same tariffs on Britain as he has on Iran.

“His appalling treatment of President Zelenskyy still looms large in many of our minds, so I understand how great the temptation is to cancel his state visit.

“But we have to remember that Trump thinks of himself as a ‘deals’ man. The one thing he thinks he understands is a negotiation – and the state visit is our ace in the hole when it comes to dealing with the president.

“The government should keep all options open and be tough in talks ahead of any visit to try to end this trade war before it starts.”

Carla Denyer, co-leader of the Greens, said the visit should not have been offered in the first place, but stopped short of saying it should not happen.

“I can’t imagine many Brits will be thrilled to see Starmer rolling out the red carpet for a man that has proposed the ethnic cleansing of Gaza, blamed Zelenskyy for the war in Ukraine, and is now wreaking havoc on the global economy with his tariffs,” she said.

Trump with Queen Elizabeth II laugh during a Buckingham Palace banquet at his last state visit to the UK in 2019.

It may well be that the solution for the PM will be found in a classically British political fudge.

Would it really be all that surprising if no suitable date could be found in the King’s packed diary to squeeze in the visit before Trump leaves office in 2029?

That would spare the monarch – who is thought to be no great fan of the president either – some embarrassment while also avoiding a political firestorm for Starmer.

The most likely outcome, however, is that it will go ahead, although probably not until nearer the end of Trump’s four-year term.

Starmer will hope that an economic deal is done with the US by then, sparing the UK the worst of Trump’s tariffs, while also drawing some of the sting from the state visit controversy.

Whatever happens, his eagerness to be the King’s messenger boy will be added to the growing list of political mis-steps he has made since enter No.10 last July.

Trump Plays Doctor In Bizarre Truth Social Gush Over Tariff ‘Liberation Day’

Posted on 03/04/2025 by Boris Clair

The diagnosis was delusional on Truth Social early on Thursday.

US President Donald Trump cast himself as a doctor performing surgery in a post regarding his “Liberation Day” onslaught of trade-war escalating tariffs.

“The operation is over!” Trump wrote. “The patient lived, and is healing. The prognosis is that the patient will be far stronger, bigger, better, and more resilient than ever before. Make America great again!”

If healing can be defined as global markets plummeting after Trump’s announcement of a 10% across-the-board tariff on foreign goods (plus much more for major trade partners like China and the European Union), then congratulations, “Dr Trump.”

But we’re thinking he could use a dose of reality.

He may have to operate again.

Trump Says He ‘Couldn’t Care Less’ If His Tariffs Push Up Car Prices

Posted on 30/03/2025 by Boris Clair

Donald Trump has said he “couldn’t care less” if his tariffs push up the prices of foreign cars in America.

In comments which will increase fears of a global trade war, the US president also said the swingeing import taxes he is bringing in will be permanent.

Trump has said he plans to impose 25% tariffs on all foreign-built cars imported into the States from April 2.

The move is designed to boost the American car industry by reducing demand for foreign vehicles.

Britain currently sells more than £6 billion-worth of cars to the US, meaning the policy could have a major impact on the UK economy.

In addition, Trump wants to impose tariffs on steel imports and on all countries, like the UK, which charge VAT.

Chancellor Rachel Reeves has also been warned by the Office for Budget Responsibility that all of the spare cash she hoped to have would be wiped out if Trump goes ahead with his plans.

Asked what his message was to car bosses, Trump said: “The message is congratulations, if you make your car in the United States, you’re going to make a lot of money.

“If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff.”

Asked if he was concerned about car prices going up, Trump said, “No, I couldn’t care less, because if the prices on foreign cars go up, they’re going to buy American cars.”

And asked if the tariffs would be permanent, Trump said: “Absolutely, they’re permanent, sure. The world has been ripping off the United States for the last 40 years and more. And all we’re doing is being fair, and frankly, I’m being very generous.”

Home secretary Yvette Cooper on Sunday slammed Trump’s tariffs plans.

She told Sky News: “We clearly want to see reductions in barriers to trade, not increasing barriers to trade. So obviously we’re very disappointed at the US decision to introduce tariffs, including around auto and steel and so on.”

British officials are continuing negotiations with their US counterparts in a bid to agree an economic deal which could exempt the UK from the tariffs.

The home secretary added: “In the end, if you increase barriers to trade right across the world, that’s not good for the world economy, let alone any individual country as part of that.

“That’s why our approach to this is to try to seek new trade agreements across the world, including improving our trading relationship with the EU as well as the US. This is about removing barriers instead of increasing them.”

Asked if the UK could retaliate by imposing its own tariffs on American imports, the home secretary said: “The prime minister has said that no option is off the table and we will continue to approach this in the UK national interest.”

Meanwhile, a poll by the Best for Britain campaign group showed voters want to see the government establish closer economic ties with the EU in the face of Trump’s threat.

The YouGov survey showed that 43% of of Brits believe the UK should improve trade with the bloc, compared to just 14% who think improving relations with Trump is the way to go.

Keir Starmer has said he wants to reset Britain’s relationship with the EU, but has ruled out rejoining either the single market or the customs union.

Yvette Cooper Hits Out At ‘Really Damaging’ Tariffs As Trump Slaps Them On Canada And Mexico

Posted on 02/02/2025 by Boris Clair

Yvette Cooper has described import tariffs as “really damaging” for the world economy as Donald Trump slapped them on Mexico and Canada.

The home secretary said the UK government was focused on “removing barriers to trade” rather than putting up new ones.

Trump said most goods entering the US from Mexico and Canada will have a 25% tariff added to them, except for Canadian oil, which will see a 10% tariff.

He said it was because the two countries were not doing enough to stop drugs entering the US, or tackle illegal immigration.

Trump also said he was imposing a new 10% tariff on goods from China on top of existing duties.

The US president has also threatened to impose tariffs on EU exports to America – raising fears that he could do the same for British goods being sold to the US.

Asked about the move on the BBC’s Sunday with Laura Kuenssberg programme this morning, Cooper said: “Tariff increases right across the world can have a really damaging impact on global growth and trade so I don’t think that’s what anybody wants to see.

“The focus for Johnny Reynolds, our business and trade secretary, is on building trade links and better trading relations and removing barriers to trade with the US and also with other European countries and with countries right across the world.

“We want to reduce the barriers to trade, make it easier for businesses.”

Tariffs are charges placed on imported goods as they enter the country, paid by the company or individual bringing the good in.

Economists are almost unanimous that tariffs are passed on to the consumer as higher prices.

Joe Biden Warns Trump Not To ‘Screw Up’ Relationships With Allies Over Tariff Threats

Posted on 30/11/2024 by Boris Clair

US President Joe Biden on Thursday expressed hope that President-elect Donald Trump will reconsider his pledge to apply tariffs on Mexico and Canada, saying the move would be “counterproductive.”

Earlier this week, Trump said he would impose a 25% tariff on all goods from Mexico and Canada as soon as he takes office.

During a visit to the Nantucket Fire Department on the morning of Thanksgiving Day, Biden suggested taking such action against US neighbours and allies would be a mistake.

“I hope he rethinks it. I think it’s a counterproductive thing to do,” Biden said of Trump. “We have an unusual situation in America. We’re surrounded by the Pacific Ocean, the Atlantic Ocean, and two allies, Mexico and Canada. The last thing we need to do is begin to screw up those relationships. I think we’ve got them in a good place.”

Trump has previously suggested tariffs would motivate Mexico and Canada to address some of the issues he repeatedly complained about during his White House bid — undocumented immigrants crossing into the US through the southern border and the fentanyl crisis. Trump said the two countries could “easily solve” those issues.

“We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” Trump said Monday.

Biden, for his part, noted that border crossings have decreased significantly since Trump’s last term in office.

Trump has also said he will levy an additional 10% tariff on Chinese goods in January.

As Biden wraps up his final months in office, he spoke to reporters about what he is grateful for this Thanksgiving season.

“I’m thankful for my family. I’m thankful for the peaceful transition of the presidency,” he said.

He added that he is thankful for the US-backed ceasefire agreement between Israel and Hezbollah in Lebanon. The deal does not cover the war in Gaza.

In a statement released by the White House addressing another major foreign policy concern for his administration, Biden slammed Russia for its Thursday attacks on several Ukrainian cities, including Kyiv, targeting the country’s energy infrastructure as the winter months approach.

“This attack is outrageous and serves as yet another reminder of the urgency and importance of supporting the Ukrainian people in their defense against Russian aggression,” Biden said.

Trump’s impending return to the White House has prompted concern among Ukraine allies about the future of US support for Kyiv given the president-elect has previously refused to say whether it would be in the United States’ interest for Ukraine to win the war.

But during his remarks to reporters, Biden said he will work to ensure the transition to the Trump administration “goes smoothly,” while seeming to express hope that Trump may walk back some of his controversial campaign pledges.

“I want to make sure it goes smoothly. All the talk about what he’s going to do or not do — I think there may be a little bit of an internal reckoning on his part,” he said of Trump. “So it remains to be seen.”

Biden added that the makeup of the incoming Congress with Republicans having a thin majority in both the House and the Senate will require “some real compromise.”

“But we’ll see,” Biden said. “On Thanksgiving, I am hopeful.”

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