Sir Keir Starmer has stated that US-UK trade talks are «well advanced» in anticipation of tariffs that Donald Trump is expected to impose on the UK this week. However, he emphasized the importance of avoiding a hasty response.
In an interview with Sky News political editor Beth Rigby, the Prime Minister mentioned that the UK is actively pursuing an economic deal with the US and significant progress has been made leading up to the expected tariffs on Wednesday.
While acknowledging the likelihood of tariffs being imposed, Sir Keir expressed the need to prioritize the national interest and keep all options on the table to address the situation effectively.
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Sir Keir further commented, «We are in discussions regarding economic deals that are well advanced. These negotiations, which typically take months or years, have progressed rapidly in a matter of weeks. Therefore, a composed and measured approach, rather than a reactionary one, is crucial for the benefit of our country.»
Downing Street announced on Monday that the UK is bracing for new US tariffs on Wednesday, referred to as «liberation day» by the US President, due to the absence of an agreement to exempt British goods in time.
While a 25% tariff on cars and car parts had already been declared, the upcoming tariffs are expected to encompass all exports to the US.
Jonathan Reynolds, the Business and Trade Secretary, expressed optimism about the potential reversal of tariffs. However, he cautioned about considering retaliatory measures if a resolution is not reached soon.
He emphasized the government’s composed approach in striving for a deal, while acknowledging that retaliatory tariffs are a reasonable option, echoing Sir Keir’s stance over the weekend.
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Donald Trump speaks to reporters aboard Air Force One on Sunday.
Tariff announcement on Wednesday
President Trump has been threatening to impose tariffs – import taxes – on countries with the largest trade imbalances with the US.
However, he recently hinted that the tariffs could apply to all countries, without specifying which ones or which industries would be affected.
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President Trump is set to reveal his tariff proposal on Wednesday afternoon during a news conference in the Rose Garden, according to the White House press secretary.
«Wednesday will be ‘Liberation Day’ in America, as President Trump has proudly named it,» said Karoline Leavitt.
«The president will announce a tariff plan aimed at addressing the unfair trade practices that have been harming our country for years.» He is taking this action in the best interest of the American worker.»
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Trump’s tariffs: What can we expect?
Tariffs would cut UK economy by 1%
UK government forecaster the Office for Budget Responsibility (OBR) said a 20 percentage point increase in tariffs on UK goods and services would cut the size of the British economy by 1% and force tax rises this autumn.
Global markets remained flat or down on Monday in anticipation of the tariffs, with the FTSE 100 stock exchange trading about 1.3% lower on Monday, closing with a 0.9% loss.
On Wall Street, the S&P 500 rose 0.6% after a volatile day which saw it down as much as 1.7% in the morning.
However, the FTSE 100 is expected to open about 0.4% higher on Tuesday, while Asian markets also steadied, with Tokyo’s Nikkei 225 broadly unchanged after a 4% slump yesterday.
Sir Keir Starmer has said US-UK trade talks are «well advanced» ahead of tariffs expected to be imposed by Donald Trump on the UK this week – but rejected a «knee-jerk» response.
Speaking to Sky News political editor Beth Rigby, the prime minister said the UK is «working hard on an economic deal» with the US and said «rapid progress» has been made on it ahead of tariffs expected to be imposed on Wednesday.
But, he admitted: «Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.
«But I have to act in the national interest and that means all options have to remain on the table.»
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Sir Keir added: «We are discussing economic deals. We’re well advanced.
«These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.»
Keir Starmer
Downing Street said on Monday the UK is expecting to be hit by new US tariffs on Wednesday – branded «liberation day» by the US president – as a deal to exempt British goods would not be reached in time.
A 25% levy on car and car parts had already been announced but the new tariffs are expected to cover all exports to the US.
Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is «hopeful» the tariffs can be reversed soon.
But he warned: «The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.»
He added the government was taking a «calm-headed» approach in the hope a deal can be agreed but said it is only «reasonable» retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.
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‘Everything on table over US tariffs’
Sir Keir Starmer has emphasized the progress made in US-UK trade talks, despite the looming threat of tariffs from President Donald Trump. In a recent interview with Sky News political editor Beth Rigby, Sir Keir highlighted the efforts being made to secure an economic deal with the US, noting the significant headway that has been achieved in a short period. While acknowledging the likelihood of tariffs being imposed, he stressed the importance of maintaining a calm and collected approach rather than resorting to knee-jerk reactions.
The Prime Minister underscored the necessity of acting in the national interest, emphasizing that all options must be considered to safeguard the country’s economic well-being. He expressed optimism about the ongoing discussions on economic deals with the US, noting that the progress made in a matter of weeks would typically take months or even years to achieve. This deliberate and measured approach, according to Sir Keir, is crucial for navigating the complexities of international trade negotiations and ensuring the best outcome for the UK.
Meanwhile, Downing Street confirmed that the UK is bracing for new US tariffs scheduled to take effect on Wednesday, dubbed «liberation day» by President Trump. While efforts to exempt British goods from these tariffs have not materialized in time, the focus has shifted towards mitigating the impact on key sectors such as the automotive industry. Jonathan Reynolds, the business and trade secretary, expressed hope that the tariffs could be reversed soon, emphasizing the need for a swift resolution to avoid escalating tensions.
Despite the looming threat of tariffs, the UK government remains committed to pursuing a peaceful and diplomatic resolution to the trade dispute. While retaliatory measures are being considered as a last resort, the emphasis is on finding common ground and reaching a mutually beneficial agreement with the US. Both Sir Keir and Jonathan Reynolds have echoed the importance of maintaining a level-headed approach in negotiations, underscoring the need for patience and strategic thinking to secure the best possible outcome for the UK.
As the deadline for the imposition of tariffs draws near, the UK government continues to engage in dialogue with US counterparts to explore all possible avenues for resolving the trade dispute amicably. The focus remains on protecting British interests and safeguarding the economy from any adverse effects that may result from the tariffs. With both sides expressing a willingness to find common ground, there is cautious optimism that a resolution can be reached to avert a full-blown trade war.
In conclusion, the ongoing US-UK trade talks underscore the importance of diplomacy and strategic negotiation in navigating complex international trade relations. Despite the challenges posed by the impending tariffs, both sides remain committed to finding a peaceful resolution that serves the interests of their respective countries. By adopting a calm and collected approach, the UK aims to secure a favorable outcome in the trade negotiations with the US, ensuring stability and prosperity for its economy in the long run.
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