Keir Starmer Pledges to Shield UK Businesses from Trump Era Tariff Shockwaves

Hadisur Rahman, Jadetimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: PA Media

Prime Minister Sir Keir Starmer has vowed to use industrial policy as a strategic tool to protect UK businesses from the sweeping tariffs imposed by US President Donald Trump, calling the global trade environment a "gathering storm" for British exporters.

In an article for The Sunday Telegraph, Sir Keir stated that while the UK will continue to push for a trade deal with the US, his government is ready to intervene directly in the economy if necessary to protect national interests. He acknowledged that such interventionist approaches may be controversial but insisted they are essential in today’s rapidly shifting global marketplace.

“Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided,” he wrote. “But we simply cannot cling on to old sentiments when the world is turning this fast.”

The US recently introduced a 10% baseline import duty, impacting UK goods among others, along with steep 25% tariffs specifically targeting UK car exports, steel, and aluminium. The measures are set to expand further on April 9, with some countries facing tariffs of up to 50%.

President Trump has defended the tariffs as a way to boost the domestic economy by encouraging consumers to buy American. However, the global response has been volatile, with retaliatory measures from countries like China and global stock markets dropping over 5%, sparking fears of a recession.

Jaguar Land Rover responded by announcing a temporary pause on all shipments to the US, citing the need to reassess operations under the new trade terms.

Starmer said the government will now accelerate its domestic industrial strategy, aimed at improving competitiveness and reducing exposure to global economic shocks. While an official industrial strategy was already promised in Labour’s election manifesto for this summer, elements of it may be expedited to support UK industries hit hardest by the tariffs.

The prime minister emphasized that while his preference is for a negotiated resolution with the US, “all options remain on the table.”

“I will only strike a deal if it is right for British business and the security of working people,” he added.

The opposition Conservative leader, Kemi Badenoch, has urged the government to prioritize a “deep and meaningful” trade deal with the US, warning against measures that could compromise standards or delay growth.

In 2024, the UK exported nearly £60 billion worth of goods to the US, with machinery, automobiles, and pharmaceuticals among the top categories. To prepare for potential retaliatory action, the UK government released a 400-page list of American products that could face counter-tariffs, covering approximately 27% of imports from the US. These goods were selected to minimize economic disruption within the UK.

Business Secretary Jonathan Reynolds confirmed the government will consult with British companies to assess the impact of retaliatory tariffs before any measures are implemented.

Sir Keir also indicated a broader international strategy, pledging to reduce trade barriers with other economies in an effort to diversify UK export markets and offset the impact of the US tariffs.

Over the weekend, the prime minister held discussions with several global leaders, including French President Emmanuel Macron. Both agreed that a trade war serves no nation’s interest, though they also acknowledged that “nothing should be off the table.”

Despite the mounting tariff pressure, UK businesses are also bracing for a domestic financial hit as the new National Insurance hike for employers takes effect today—another point of contention raised by the Conservative and Liberal Democrat parties.

The months ahead are likely to prove pivotal as the UK government balances trade negotiations, domestic economic support, and its broader industrial policy to steer through the unfolding global trade turbulence.