Trump tariffs LIVE: Keir Starmer scrambles to secure UK-US deal after hammerblow
American officials have been playing down the chances of the UK getting a trade deal that could eliminate tariffs entirely.
They believe that the 10% level announced by Donald Trump is the lowest rate possible. Some say that removing tariffs entirely would open the door to 'abuse', Bloomberg reports.
While tariffs have added to tensions between the US and EU, the row over Donald Trump's attempt to annex Greenland is also continuing.
Denmark’s Prime Minister is wrapping up her three-day visit to Greenland after telling the US “you cannot annex another country” – even when it comes to questions of international security.
Mette Frederiksen travelled to the strategically critical Arctic island as US President Donald Trump spoke about taking control of it.
He argues that Greenland, a semi-autonomous territory belonging to the Kingdom of Denmark, is critical to US security.
A week ago, American vice president JD Vance visited a remote US military base in Greenland and accused Denmark of underinvesting in the territory.
Ms Frederiksen pushed back against the US criticism as she spoke on Thursday alongside Greenland’s incoming and outgoing leaders. She argued that Denmark, a Nato ally, has been a reliable friend.
Oxford Economics believes the UK economy will grow more slowly after President Trump imposed tariffs on US imports.
Chief UK Economist Andrew Goodwin said: "It's likely that the government will need to increase defence spending from the planned 2.5% of GDP to 3% or more. Manifesto pledges not to increase tax will likely need to be revisited, and the Chancellor may also look to squeeze spending further.
"Another change of fiscal rules, possibly excluding defence spending, cannot be ruled out.”
Britain is ready to strike back against the US unless a trade deal scrapping Donald Trump’s tariffs on UK goods is agreed within weeks. Prime Minister Sir Keir Starmer vowed to remain “cool and calm” after the US president announced fees of 10% would be levied on imports from the UK and insisted: “A trade war is bad for working people and bad for our businesses.”
But he also warned “nothing is off the table” as the Government launched a consultation asking businesses for their views on retaliatory tariffs, which could be charged on key US products such as Bourbon whiskey, motorcycles, guitars and jeans. The consultation is due to run until May 1 – and the threat of charges on US imports will be lifted if the White House agrees to a trade deal before then, Business Secretary Jonathan Reynolds confirmed.
Sir Keir Starmer must provide support for UK carmakers to prevent jobs being lost as a result of Donald Trump’s tariffs, industry experts have warned. A 25% tariff on all vehicles exported to the US came into force on Thursday, while Mr Trump’s 10% tariff on other UK products will hit exports of car parts.
Prof David Bailey, of Birmingham University’s Department of Management, said British carmakers were already squeezed by falling sales in China, stagnant demand in EU countries and difficulties convincing motorists to switch to electric vehicles. He said: “Tariffs will make UK exports to the US more expensive. That will reduce demand. It’s going to hit sales and therefore production in the UK. It means lower profits and therefore job losses.”
The British government is hoping to agree a trade deal with the US to end the tariffs. However Whitehall officials say this could take more than a month to agree, if it ever happens.
Word from the US is that Mr Trump's administration is open to a UK trade deal but the priority may be to sign agreements with countries with higher tariffs than the UK, which has one of the lowest tariffs at 10%.
The UK’s top stocks slid further in value this morning after worries over US tariff plans shook the global financial markets.
London’s FTSE 100 Index of companies dropped by 0.68% to 8,416.71 in early trading.
Banking stocks were among the heavier fallers, with Asia-focused firm Standard Chartered dropping by around 4%.
Mining and commodity stocks were also among the fallers, after specific tariffs on metal production, such as aluminium.
Elsewhere in Europe, the French Cac 40 index was 0.68% lower and the German Dax was 0.71% lower.
It came after further declines in the Asian markets after heavy losses across global stock markets on Thursday.
The Hang Seng Index in Hong Kong was down 1.5% and Japan’s Nikkei dropped 2.4%, adding to losses in the previous session, as traders continued to digest the impact of US President Donald Trump’s tariff plans.
Meanwhile, the pound took a step back on Friday, dipping by 0.33% to 1.305 against the US dollar, having risen to its highest level since November last year overnight.
The Government will make a series of announcements to strengthen the economy in the face of Donald Trump's tariffs, it's reported.
The Prime Minister will speed up publication of an industrial strategy to support businesses. Rules requiring carmakers to sell electric vehicles will also be watered down.
Foreign Secretary David Lammy said people across the country were “very concerned” about how the move to slap 10% import taxes on goods would hit their own finances, and added “all options” remain on the table to respond in the national interest.
Ministers have insisted they will remain “cool and calm” as they seek to secure an economic deal to mitigate the damage to Britain, but are not ruling out the possibility of retaliatory levies on a range of American products.
Asked whether it was time for the UK to stand up to Mr Trump, Mr Lammy told reporters following a meeting with Nato counterparts in Brussels: “The United Kingdom, like France, is a great maritime nation.
“We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century.
“As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
“And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.
“We will put their national interest first, and it’s in their national interests to be negotiating with the United States an economic agreement at this time, but keeping all options on the table.”
French President Emmanuel Macron has gone further than the UK in criticising Mr Trump's decision, denouncing it as “brutal and unfounded” decision after 20% tariffs were hiked on the EU.
The US President’s announcement on Wednesday sent stock markets tumbling across the globe, with the Prime Minister warning it marks the beginning of a “new era” in world trade.
Donald Trump insisted Sir Keir Starmer was “very happy” with Britain’s tariff treatment.
Despite the UK Government having made clear its disappointment in the tariffs, the US President told journalists on board Air Force One late on Thursday that the Prime Minister was “very happy” with the result.
Mr Trump said: “We have a very good dialogue. I think he was very happy about how we treated them with tariffs.”
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