Starmer says UK has ‘range of levers’ as he promises to respond to Trump tariffs with ‘cool and calm heads’
Good morning. Today we are getting the considered UK government response to the colossal announcement from President Trump last night about global tariffs that could reset the way the world economy works. Rather, we are getting the considered initial response. Keir Starmer has ruled out immediate retaliation, and he promises to keep a “cool head” as he decides how to respond “in the coming days and weeks’.
Here is Pippa Crerar’s overnight story about the Trump announcement.
This morning Starmer has issued a response in comments to business leaders in Downing Street. Here are the main points.
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 …
That is how we have acted – and how we will continue to act. With pragmatism. Cool and calm heads.
We move now to the next phase of our plan …
We have a range of levers at our disposal, and we will continue our work with businesses across the country to understand their assessment of these options.
As I say – our intention remains to secure a deal.
But nothing is off the table.
Ministers hope that an economic deal with the US could lead to tariffs being reduced or removed.
Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship – they continue, and we will fight for the best deal for Britain.
Nonetheless, I do want to be clear I will only strike a deal if it is in the national interest and if it is the right thing to do for the security of working people.
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 …
Decisions we take in the coming days and weeks, will be guided only by our national interest. In the interest of our economy. In the interests of the businesses around this table.
In the interests of putting money in the pockets of working people. Nothing else will guide me. That is my focus.
These passages seem to have been included to rebut claims that Starmer has been too accommodating to Trump. Starmer normally argues that the US and the UK are very close allies, implying their interests are aligned. This is a rare acknowdgement from Starmer that Trump’s actions have changed that.
Here is the agenda for the day.
9.30am: Lisa Nandy, the culture secretary, takes questions in the Commons.
11.30am: Keir Starmer and Angela Rayner launch Labour’s local elections campaign at an event in the East Midlands.
11.30am: Downing Street holds a lobby briefing.
Around 11.30am: Jonathan Reynolds, the business secretary, makes a statement to MPs about the Trump tariffs.
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Key events
Jonathan Reynolds makes statement to MPs about Trump
Jonathan Reynolds, the business secretary, is making a statement to MPs about the Trump tariffs.
He says the UK has a strong trading relationship with the US, worth £315bn. This is second only to the relationship with the EU, which is worth £791bn.
He says the UK is subject to 10% tariffs – the lowest rate.
This is “disappointing”, he says.
But he says he will tell MPs how the UK can navigate this.
Green party says UK should respond to Trump tariffs by lining up with EU and Canada
The Green party says the UK should respond to the Trump tariffs by uniting with Canada and the EU to fight them. This is also what the Lib Dems have called for.
Carla Denyer, the Green co-leader, said:
We need to work together to oppose Trump’s divide-and-rule tactics.
In the first instance, that means standing with partners like the EU and Canada who share our commitment to trade agreements rather than trade coercion.
It’s a fantasy to believe that our long-term economic prosperity can be left in the hands of whether or not we are in Trump’s favour on any one given day.
As such, we must prioritise securing a customs union agreement with the EU so that we regain the strength of being part of a larger bloc.
Ben Quinn
Ben Quinn is a senior Guardian reporter.
Johnny Reynolds, the business secretary, has been suggesting in private to Labour MPs that the 10% tariffs imposed on the UK by Donald Trump is a relative success and is down to Britain’s courtship of the US president.
“Colleagues will be watching the news from the US tonight. Whilst it is positive the UK has received the best treatment, reflecting our engagement with the US so far, we still have work to do to secure a wider deal that delivers the best for UK business and industry,” Reynolds said in a message sent to Labour MPs.
The tone was somewhat different to the one taken by Reynolds on the morning broadcast rounds when he told the BBC’s Today programme that he was “disappointed” by Trump’s decision.
Reynolds was pulled up by the Today programme’s Nick Robinson, who pointed out that the 10% tariff was a standard tariff for the whole of the world, including the unpopulated Heard and McDonald Islands.
“You’re not claiming, are you, that this 10% tariff is a result of your negotiations, are you? You’re not saying we’re being treated better because we’ve been nicer to Donald Trump?” he asked.
Reynolds said: “We have engaged on trade issues, that has been important.”
Briefing material was due to be sent out to members of Labour’s parliamentary party, he also told Labour MPs, adding “your support as ever is appreciated.”
Lib Dems urge government to launch ‘Buy British’ campaign in response to Trump tariffs
The Liberal Democrats are urging the government to launch a ‘Buy British’ campaign (which will bring back memories of the 1970s to older readers). Daisy Cooper, the Lib Dem deputy leader and Treasury spokesperson, said:
People across the country are deeply worried about what Trump’s trade war means for their living standards, and want to know what they can do to help. We need to bring the country together, and show collectively that we won’t take Trump’s tariffs lying down.
The Government should launch a campaign to encourage people to Buy British and support our high streets, as part of a national effort to back British businesses. That must be bolstered with a raft of serious measures to unleash the potential of our businesses including overhauling business rates, scrapping the jobs tax and fixing our trading relationship with the EU.
Ministers also need to rule out making concessions to Trump that would damage our local farmers, threaten the NHS or undermine the online safety of our children. We need to send Trump a clear message that Britain will not be bullied, by rallying round our businesses at home and working with our Commonwealth and European allies abroad.
Badenoch offers to help Labour with US trade talks – and says Trump’s tariffs will make ‘all of us poorer’
Kemi Badenoch has been tweeting about President Trump’s tariffs this morning.
Rather optimistically, she is offering to help the government negotiate a trade deal with the US. She says:
Leaving the EU has left us in a stronger position on trade. We now have an independent trade policy but this only works if it is used properly by people who know what they’re doing.
The only party with any recent experience of negotiating deals is the Conservatives. We are here and ready to help in the national interest. It’s time for the Labour government to get a deep and meaningful trade deal with the US that removes these tariffs and delivers growth without compromising on standards. (2/2)
This makes the Conservative party sound non-partisan, which is often superficially appealing in Westminster politics. But, of course, it is not a genuine offer, because Badenoch knows that Keir Starmer is more likely to take negotiating tips from Larry the Downing Street cat. He told us exactly what he thought about Badenoch’s skills in this areas at PMQs yesterday. Badenoch “was the trade secretary who failed to get a trade deal with the US,” he said.
But Badenoch also criticises the Trump tariffs quite directly. She says:
If we fail to learn the lessons of history we will be doomed to repeat them.
President Trump’s tariffs will not make the US wealthier but they will make all of us poorer.
Ronald Reagan understood this because he lived through when it happened before
This is interesting because at the weekend a report (which Badenoch denied) claimed she had told her shadow ministers not to criticise Trump. This comment suggests she is comfortable being negative about the president. The overnight CCHQ response to the tariffs announcement (issued by the shadow business secretary, Andrew Griffith, who is more of a Maga enthusiast – see 9.33am), criticised Labour, but at no point suggested Trump was making a mistake.
Lisa Nandy, the culture secretary, has suggested the government will not water down UK copyright law as part of a trade deal with the US.
During culture questions in the Commons, the former Tory culture secretary John Whittingdale asked about reports that the deal could include concessions on AI regulation. He asked Nandy to assure “the creative and the news media sectors that any negotiations will not include an offer to weaken our copyright framework, which would be opposed by creative industries both in the UK and in the US”.
Nandy replied:
Our copyright framework is an essential part of their success. We’ve been clear, if it doesn’t work for creatives, then it doesn’t work for us, and we won’t do it.
The prime minister has been clear in terms of negotiations with the United States that this is the start of the process, but we will always work in the national interest and we’re considering all steps as we look to the future.
Caoimhe Archibald, Northern Ireland’s economy minister, has described the Trump tariffs as “deeply regrettable”.
Northern Ireland faces particular difficulties because of its unique, post-Brexit trading arrangements, which means that in effect it remains part of the EU’s single market.
Northern Ireland exports to the US will face 10% tariffs, like exports from other parts of the UK. But if the EU imposes retaliatory tariffs on US imports, those tariffs would have to be applied to US goods arriving in Northern Ireland.
Archibald, a Sinn Féin minister in the power-sharing executive, said:
The announcements made last night are deeply regrettable. A trade war will only fuel inflation and risk recession.
She said she had spoken already to Irish deputy premier Simon Harris and a representative of the UK government and had set out five key asks.
First, to keep the north’s unique circumstances in mind in trade negotiations and in terms of any counter-measures.
Second, to act in concert, and to minimise divergence between Britain and the EU.
Third, to provide a properly resourced advice service for businesses so that they can understand how tariffs affect them.
Fourth, to improve existing trading initiatives such as HMRC’s duty reimbursement and waiver schemes.
Finally, to bring forward an economic package that protects our international competitiveness.
Greenpeace activists have scaled a building outside the Foreign Office in protest over delays to signing an international treaty protecting oceans, PA Media reports. Four protesters unfurled a banner as they suspended themselves on columns on the King Charles Street archway in Westminster early today. The group called for faster action from David Lammy, the foreign secretary, in signing the Global Ocean Treaty, with the banner showing a turtle with the words “Lammy don’t dally!”.
Campaigners say they are ‘appalled’ by reports UK-US trade deal could include review of Online Safety Act
Internet safety campaigners have expressed alarm about reports that the Online Safety Act could be reviewed as part of the economic deal the UK is negotiating with the US.
According to a Politico report, quoting unnamed sources who have been briefed on what is in the potential deal, it will include a commitment to a review of the Digital Markets and Competition Act and the Online Safety Act.
Andy Burrows, chief executive of the Molly Rose Foundation, said the charity had written to Jonathan Reynolds to warn of the “dire consequences” of reducing online safety duties on big tech platforms. Burrows said:
We are dismayed and appalled by reports that the Online Safety Act could be watered down to facilitate a US trade deal.
We have written to Jonathan Reynolds [business secretary] urging him not to continue with an appalling sell out of children’s safety and to meet with lived experience campaigners to understand the dire consequences.
At a time when online safety laws require strengthening it leaves us questioning how many young lives are we prepared to lose to dodge Trump’s tariffs?
As PA Media reports, the Molly Rose Foundation was founded by the friends and family of Molly Russell, who ended her life aged 14, in November 2017, after viewing suicide and self-harm content on social media.
Matthew Sowemimo, associate head of policy for child online safety at the NSPCC, said:
The Online Safety Act offers a foundation that we believe will vastly improve children’s experiences online.
For too long, too many children and young people have been exposed to harmful content, groomed, harassed and bullied online. The Government must not roll back on their commitment to making the online world safer for them, now and in the future.
Britain is not the only country where the government has yet to decide how it will respond to the Trump tariffs. The same discussions are happening across Europe, where Brussels is in the lead because tariffs are a matter for the EU. Jakub Krupa is covering the Europe-wide reaction on his Europe live blog.
Anyone arguing Trump tariffs are Brexit bonus has ‘missed the point’, says Reynolds
Jonathan Reynolds, the business secretary, has argued that people interpreting the Trump tariff announcements as some sort of Brexit bonus are missing the point.
The Conservative party, and some Tory papers, have claimed that the announcement vindicates Brexit, because the tariffs imposed on the UK are lower than the tariffs imposed on the EU. (See 9.33am.)
But, when asked about this claim on Times Radio, Reynolds replied:
I think anyone trying to use this to fight the kind of perennial historical political debates in the UK has missed the point.
This is … a really significant change to how the global trading system operates and the US’s role within it.
Of course, I’m happy that we in the UK can set our own specific trade policy in our own interests, that’s important to me, and an important way of how we are handling these issues.
But, look, this is much bigger than the UK’s relationship to the European Union and we’ve got to recognise that.
Reynolds says he hopes economic deal with US can lead to all tariffs affecting UK being removed
Jonathan Reynolds, the business secretary, said this morning that he hopes the economic deal with the US that the government is negotiating will lead not just to a reduction in tariffs on the UK, but to their removal.
British and US negotiators are reportedly very close to finalising a deal, but it has yet to be signed off by President Trump.
In an interview on the Today programme, asked if he hoped the deal would lead to the tariffs being removed, or if he was just hoping for a deal that would compensate for the impact of the tariffs by providing other economic benefits to the UK, Reynolds replied
No, I want those tariffs removed. I want them removed in terms of the 10% that’s been announced. I want them removed on steel and aluminium. I don’t think there is an argument, a strong argument, for those being in place …
I want not only to remove what has been announced so far, but to strengthen that relationship. I want more UK businesses with stronger market access to all parts of the US. That’s the prize on offer.
Asked if there was a deal “ready to go”, Reynolds said that was “not an accurate reflection of where we’re at”. But Nick Robinson, the presenter, said Reynolds was smiling as he replied, implying there was more truth in the question than he wanted to admit.
In a separate interview on LBC, Reynolds said praised the “warmth” and “good faith” shown by his US counterparts negotiating the deal, and he said they were looking at “a really significant and interesting and relevant set of agreements”.
He also said he wanted to ultimately make the trade relationship with the US stronger.
What I am committed to – and what I genuinely believe we can deliver – is a position where not only are we not in a position where we’ve got to think about job losses or about the loss of exports, but we can strengthen that relationship. That is what we’re committed to doing.
Business leaders are telling government to stay calm and ‘don’t overreact’ to US tariffs, Jonathan Reynolds says
Keir Starmer said this morning that he would respond calmly to the US tariff announcements, and that he would not be rushed into a quick decision about retaliation. (See 9.06am.)
Speaking to Sky News this morning, Jonathan Reynolds, the business secretary, said that business leaders were telling government not to overreact. He said:
We in the UK will take any action we need to give ourselves the tools that we need to respond to announcements of this kind …
Whilst we have a chance of making the relationship between the UK and the US even stronger than it is, the message I get very strongly from businesses [is] ‘remain at the table, don’t overreact’.
Stick with the calm-headed approach the UK government has had to date, and we’re going to do that, but we can’t rule anything out because, again, we’ve got to make decisions for no one else other than the United Kingdom.
Jonathan Reynolds, the business secretary, told BBC Breakfast this morning that the 10% tariff on UK exports to the US would not be additional to the 25% tariff already imposed on British (and all other) car exports to the US. “As we understand it, those tariffs are not additive,” he said.
But he accepted the tariffs were particularly difficult for the car industry.
The impact on the automotive sector of that particular tariff is one of our principal concerns.
People will know companies, great British brands, JLR, BMW, Aston Martin, have substantial exports to the US, and that’s a real issue.
Now, we need first of all to make sure we’ve got this negotiation to try and remove those tariffs. There’s no need for them, in my view.
It has been claimed that 25,000 jobs in the British car industry are at risk from the Trump tariffs.
Tories criticise government for failing to negotiate deal with Trump that might have averted tariffs
The UK is not getting special treatment from Donald Trump, the Conservative party says.
Chris Philp, the shadow home secretary, told LBC this morning that he did not accept the UK had “got off lightly”. He explained:
Dozens and dozens of countries have the same 10% tariffs on all goods and 25% on cars, just the same as us – from Costa Rica to Colombia, from Peru to Paraguay. So we’re not getting any special deal or special treatment.
These tariffs are based on essentially reciprocation of what America thinks they’re being charged by other countries.
This is really bad for our economy. It’s going to put jobs and growth at risk.
In a statement issued overnight, Andrew Griffith, the shadow business secretary, suggested the government was to blame because it did not negotiate a trade deal with President Trump. He said:
This is disappointing news which will worry working families across the country.
Labour failed to negotiate with President Trump’s team for too many months after the election, failed to keep our experienced top trade negotiator, and failed to get a deal to avoid the imposition of these tariffs by our closest trading partner.
Of course, the Conservatives did not negotiate a trade deal with the US when they were in office, as Keir Starmer reminded MPs at PMQs yesterday.
Griffith also argued that the announcement contained evidence of a Brexit bonus.
The silver lining is that Brexit – which Labour ministers voted against no less than 48 times – means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.
In his comments this morning Keir Starmer did not try to claim that having US tariffs at 10%, the lowest rate available, and half the 20% rate imposed on the EU, was a great achievement for the UK government. Jonathan Reynolds, the business secretary, did not deploy that argument either when he was interviewed on the Today programme.
According to Andrew McDonald and Bethany Dawson in the London Playbook briefing for Politico, there is a tiny bit more self-congratulation in government in private. They write:
Chin up! Whitehall officials were still trying to work out the details and small print from the U.S. late last night, but those Playbook spoke to believed that things could have been much, much worse – at least for the U.K.
Hence … the early efforts from No. 10 to push the narrative that Starmer’s efforts to charm the president paid off. “We don’t want any tariffs at all, but a lower levy than others vindicates our approach,” a Downing Street source told Playbook (and large parts of the Lobby). “The difference between 10 and 20 per cent is thousands of jobs. We will keep negotiating, keep cool and keep calm. We want to negotiate a sustainable trade deal, and of course to get tariffs lowered … we will continue with that work.”
But McDonald and Dawson also explain why ministers won’t be arguing in public that 10% is a negotiating triumph.
Now that’s a line: “Even the Taliban got a better deal than Starmer,” an SNP official, of all people, griped to Playbook last night as it was revealed Afghanistan is also in the 10 percent club despite “charging” the U.S. more in tariffs than the U.K. … err, if you include “currency manipulation,” “compliance hurdles” and all the rest, according to Trump’s highly suspect sandwich board figures.
Starmer says UK has ‘range of levers’ as he promises to respond to Trump tariffs with ‘cool and calm heads’
Good morning. Today we are getting the considered UK government response to the colossal announcement from President Trump last night about global tariffs that could reset the way the world economy works. Rather, we are getting the considered initial response. Keir Starmer has ruled out immediate retaliation, and he promises to keep a “cool head” as he decides how to respond “in the coming days and weeks’.
Here is Pippa Crerar’s overnight story about the Trump announcement.
This morning Starmer has issued a response in comments to business leaders in Downing Street. Here are the main points.
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 …
That is how we have acted – and how we will continue to act. With pragmatism. Cool and calm heads.
We move now to the next phase of our plan …
We have a range of levers at our disposal, and we will continue our work with businesses across the country to understand their assessment of these options.
As I say – our intention remains to secure a deal.
But nothing is off the table.
Ministers hope that an economic deal with the US could lead to tariffs being reduced or removed.
Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship – they continue, and we will fight for the best deal for Britain.
Nonetheless, I do want to be clear I will only strike a deal if it is in the national interest and if it is the right thing to do for the security of working people.
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 …
Decisions we take in the coming days and weeks, will be guided only by our national interest. In the interest of our economy. In the interests of the businesses around this table.
In the interests of putting money in the pockets of working people. Nothing else will guide me. That is my focus.
These passages seem to have been included to rebut claims that Starmer has been too accommodating to Trump. Starmer normally argues that the US and the UK are very close allies, implying their interests are aligned. This is a rare acknowdgement from Starmer that Trump’s actions have changed that.
Here is the agenda for the day.
9.30am: Lisa Nandy, the culture secretary, takes questions in the Commons.
11.30am: Keir Starmer and Angela Rayner launch Labour’s local elections campaign at an event in the East Midlands.
11.30am: Downing Street holds a lobby briefing.
Around 11.30am: Jonathan Reynolds, the business secretary, makes a statement to MPs about the Trump tariffs.
I’m afraid that, for the next few weeks or months, on most days staff shortages mean that comments will only be open on the blog between 10am and 3pm.
If you want to contact me, please post a message below the line, when comments are open, or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
