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Starmer seeks to keep away from Trump tariffs after ‘productive’ talks with US
The Tycoon Herald > Economy > Starmer seeks to keep away from Trump tariffs after ‘productive’ talks with US
Economy

Starmer seeks to keep away from Trump tariffs after ‘productive’ talks with US

Tycoon Herald
By Tycoon Herald 3 Min Read Published March 31, 2025
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Sir Keir Starmer has held what Downing Avenue referred to as “productive” commerce negotiations with US President Donald Trump, as he seeks to avert punitive tariffs on British exports from April 2.

However Whitehall officers have cautioned that Britain might be hit by Trump’s threatened international tariffs on what the US president calls “liberation day” on Wednesday.

One official stated: “April 2 should not be seen as the end of the process. We will carry on talking to get the best possible deal for Britain.”

Starmer, who has had common telephone calls with Trump in latest weeks, has stated that Britain could be “pragmatic and clear eyed” in its response if exports of UK-made automobiles and different items are hit by US tariffs.

Though Downing Avenue has made it clear that no choices are off the desk, Starmer has performed down the prospect of quick UK retaliation, arguing {that a} commerce battle wouldn’t be in Britain’s curiosity.

Quantity 10 confirmed a dialog had taken place between Trump and Starmer on Sunday and stated: “They discussed the productive negotiations between their respective teams on a UK-US economic prosperity deal, agreeing that these will continue at pace this week.”

Lord Peter Mandelson, Britain’s ambassador to Washington, is looking for to engineer an financial deal that may see Britain given a carve-out from Trump’s threatened reciprocal international tariffs.

Britain has spoken to the Trump workforce about scaling again or axing its digital providers tax, which is ready to lift £800mn this 12 months and significantly impacts large US tech firms.

However the UK automobile business informed Sarah Jones, business minister, on Friday that it didn’t need to see quick UK retaliation if Trump presses forward along with his risk of 25 per cent tariffs on foreign-made automobiles getting into the US.

“The industry does not want a trade war, but it’s important that we keep all options on the table,” Starmer stated final week.

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Starmer seeks to keep away from Trump tariffs after ‘productive’ talks with US

Carmakers have as an alternative demanded that ministers develop a “holistic approach” to supporting the UK auto business, together with by decrease power prices, elevated coaching and higher regulation.

The impartial Workplace for Funds Duty, the fiscal watchdog, has warned that Britain’s GDP could be 1 per cent decrease subsequent 12 months within the occasion of essentially the most “severe” international commerce battle.

That might virtually remove UK chancellor Rachel Reeves’ £9.9bn of headroom towards her fiscal guidelines, introduced final week within the Spring Assertion, and improve the probability that she must elevate taxes in an autumn Funds.

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