Starmer says Trump tariffs are start of ‘new era’, and not just ‘short-term tactical exercise’
Some commentators have assumed that President Trump is just using tariffs as a negotiating ploy. Given that he has announced tariffs on Canada and Mexico, only to cancel them very quickly, there is a theory that he is doing the same thing again, only on a global scale. Alternatively, there is a view that a prolonged, negative reaction – falling share prices, rising inflation, higher unemployment? – could lead him to change his mind quite soon.
During the Q&A at the Labour local elections campaign launch earlier, Keir Starmer in effect rejected all these theories. He said that what Trump was doing was the start of “a new era”.
And he explicitly compared the challenge posed by Trump’s economic policies to the challenge posed by his security policies, which have led to European countries ramping up defence spending.
In response to a question from Sky’s Beth Rigby, Starmer said:
There’s a really important moment here that we need to understand, because over the last few months we’ve been talking about a new era when it comes to defence and security, and recognising that we are in a changing world, going into a new era, and therefore we have to act and lead differently.
We’re at a similar point for trade and the economy. This is not just a short-term tactical exercise. It is the beginning of a new era.
We need to understand that, just as we’ve understood it for defence and security. We have to understand the changing world when it comes to trade and the economy.
And I’m very concerned that we get this argument out there because it means that we have to adapt in ways which go beyond the mere question of tariffs.
And that’s why I’ve instructed my team to go further and faster on what we need to do to put more resilience and more strength into our economy.
But Starmer did not really explore what the policy implications of this were. In his comments about strengthening the economy, he mostly spoke about things the government is already doing, such as planning reform. Some parties, like the Liberal Democrats, the Green party and Plaid Cymru agree with Starmer about the UK facing a new era, and argue that it is one that requires rejoining the EU single market or the customs union, but Starmer has shown no inclination that he agrees, and instead says the UK should not choose between the US and Europe.
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During the Q&A at the Labour local elections campaign launch earlier, Keir Starmer in effect rejected all these theories. He said that what Trump was doing was the start of “a new era”.
“,”elementId”:”37b70c99-a03b-46d8-bb3b-025c4b664d82″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
And he explicitly compared the challenge posed by Trump’s economic policies to the challenge posed by his security policies, which have led to European countries ramping up defence spending.
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In response to a question from Sky’s Beth Rigby, Starmer said:
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n
There’s a really important moment here that we need to understand, because over the last few months we’ve been talking about a new era when it comes to defence and security, and recognising that we are in a changing world, going into a new era, and therefore we have to act and lead differently.
n
We’re at a similar point for trade and the economy. This is not just a short-term tactical exercise. It is the beginning of a new era.
n
We need to understand that, just as we’ve understood it for defence and security. We have to understand the changing world when it comes to trade and the economy.
n
And I’m very concerned that we get this argument out there because it means that we have to adapt in ways which go beyond the mere question of tariffs.
n
And that’s why I’ve instructed my team to go further and faster on what we need to do to put more resilience and more strength into our economy.
n
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But Starmer did not really explore what the policy implications of this were. In his comments about strengthening the economy, he mostly spoke about things the government is already doing, such as planning reform. Some parties, like the Liberal Democrats, the Green party and Plaid Cymru agree with Starmer about the UK facing a new era, and argue that it is one that requires rejoining the EU single market or the customs union, but Starmer has shown no inclination that he agrees, and instead says the UK should not choose between the US and Europe.
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Starmer at Labour’s local elections campaign launch in Chesterfield.”,”caption”:”Keir Starmer at Labour’s local elections campaign launch in Chesterfield.”,”credit”:”Photograph: Cameron Smith/Getty Images”}}],”attributes”:{“pinned”:true,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1743690700000,”blockCreatedOnDisplay”:”10.31 EDT”,”blockLastUpdated”:1743692095000,”blockLastUpdatedDisplay”:”10.54 EDT”,”blockFirstPublished”:1743691966000,”blockFirstPublishedDisplay”:”10.52 EDT”,”blockFirstPublishedDisplayNoTimezone”:”10.52″,”title”:”Starmer says Trump tariffs are start of ‘new era’, and not just ‘short-term tactical exercise'”,”contributors”:[],”primaryDateLine”:”Thu 3 Apr 2025 11.09 EDT”,”secondaryDateLine”:”First published on Thu 3 Apr 2025 04.06 EDT”},{“id”:”67ee985a8f08e078b13e5629″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Luton Airport will be allowed to almost double in capacity after the government overruled planning inspectors who recommended blocking the scheme on environmental grounds, Gwyn Topham reports.
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The government has launched its online consultation on potential retaliatory tariffs against the US. There are details about how to respond here.
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It includes a 417-page list of US goods that might be subject to tariffs. The government wants to know from businesses how they would be affected by particular tariffs. In its news release, the Deparment for Business and Trade (DBT) says:
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UK companies are being invited to give their views on what any future UK response should look like by providing feedback to questions asking them the average value of their US imports, the impact of any possible UK tariffs and how they would adjust to them.
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The department says the fact that an item is on the 417-page list “does not mean that it will appear in any UK tariff response, should the UK choose to impose tariffs on US goods at all”.
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It also says the government would not impose tariffs on “products in the wider public interest issues such as medical supplies and military equipment”.
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The consultaton will run for four weeks. But the government is not promising a speedy decision when it closes, on Thursday 1 May. “Once the request for input closes, the government will reflect on the feedback and consider how best to respond,” the department says.
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The department also says tariffs are a “last resort”. Ministers are still hoping to a negotiate a deal with the US on trade that would lead to the current tariffs imposed on the UK being reduced or eliminated.
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Business groups have strongly welcomed the government’s decision not to announce immediate retaliatory tariffs against the US, but to instead keep talking to the US about a trade deal that might lead to tariffs being removed. One organisation, the CBI, even adopted Keir Starmer’s language about being “cool and calm”. (See 9.06am.)
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This is what three of the leading business groups are saying.
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From Rain Newton-Smith, CEO at the CBI
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Today’s announcements are deeply troubling for businesses and will have significant ramifications around the world.
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A cool and calm reaction from the UK government is the right response: UK firms need a measured and proportionate approach which avoids further escalation. Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices.
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From Emma Rowland, trade policy adviser at the Institute of Directors
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The implementation of these ‘Liberation Day’ tariffs will be a blow to British businesses, eliminating any hopes that the UK would be able to avoid the crosshairs of the global trade war …
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The UK government has so far sought to pursue constructive engagement with the US administration and with other trading partners. We are supportive of this pragmatic and level-headed approach. The UK benefits from being an open trading nation, with strongly integrated international links. The IoD support the government’s efforts to sustain the position of UK exporters in an increasingly fragmented global economy.
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From Shevaun Haviland, director general of the British Chambers of Commerce
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The government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.
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But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on businesses communities across the world.
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Severin Carrell is the Guardian’s Scotland editor.
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John Swinney, Scotland’s first minister, has pledged to “stand shoulder to shoulder” with Scottish firms facing the 10% import tariffs proposed by President Trump.
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He told MSPs during first minister’s questions he will meet Scotch Whisky Association officials in New York in coming days, when he takes part in the annual Tartan Week celebrations there, to discuss “the very significant issues” facing the sector.
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Swinney was questioned by Russell Findlay, the Scottish Conservative leader, over the Scottish government’s “short sighted” decision to cancel an export strategy devoted to US trade last year.
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The first minister sidestepped that specific point but insisted Scotland’s enterprise and export agencies were heavily engaged in promoting trade with the US, while Scottish ministers were closely cooperating with the UK government.
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Scottish whisky producers sold nearly £1bn worth of produce in the US last year, roughly a fifth of the sector’s overall production, while Scottish salmon producers exported £225m last year to the US.
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Swinney said:
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The imposition of tariffs isn’t good news. It will be damaging for economic activity in Scotland, the UK, but also across the world and there will also be negative implications for the people of the United States.
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I can assure Mr Findlay that this government will leave no stone unturned to make sure it can take forward the concerns of industry and work with the UK government.
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Swinney speaking to reporters at Holyrood today.”,”caption”:”John Swinney speaking to reporters at Holyrood today.”,”credit”:”Photograph: Ken Jack/Getty Images”}}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1743683371000,”blockCreatedOnDisplay”:”08.29 EDT”,”blockLastUpdated”:1743683617000,”blockLastUpdatedDisplay”:”08.33 EDT”,”blockFirstPublished”:1743683617000,”blockFirstPublishedDisplay”:”08.33 EDT”,”blockFirstPublishedDisplayNoTimezone”:”08.33″,”title”:”John Swinney tells MSPs Scottish government will stand ‘shoulder to shoulder’ with firms hit by tariffs”,”contributors”:[{“name”:”Severin Carrell”,”imageUrl”:”https://i.guim.co.uk/img/static/sys-images/Guardian/Pix/contributor/2007/09/28/severin_carrell_140x140.jpg?width=300&quality=85&auto=format&fit=max&s=268fdbe82024e185350f606ad4a8e90b”}],”primaryDateLine”:”Thu 3 Apr 2025 11.09 EDT”,”secondaryDateLine”:”First published on Thu 3 Apr 2025 04.06 EDT”},{“id”:”67ee7d308f08e5a723d45d5f”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
At the Labour local elections launch this morning Keir Starmer strongly played down any suggestion that the Online Safety Act would be watered down as part of a UK/US economic deal – while not quite saying it would not feature at all. (See 12.38pm.) It has been reported that the UK could be offering a review of the legislation. (See 10.49am.)
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At the Downing Street lobby briefing the PM’s spokesperson delivered a similar message – saying “basic protections” were not up for negotiaton. He said:
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n
We’ve said previously our Online Safety Act is all about protecting children online, making sure what is illegal offline is illegal online. The technology secretary has reiterated that our basic protections for children and vulnerable people are not up for negotiation. That remains the government’s position.
n
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Bobby Dean (Lib Dem) says when US rightwingers talk about freedom of speech, they mean they want US tech companies to continue to be free to impose harmful content on children. He asks Reynolds to rule out the Online Safety Act being part of UK/US economic deal.
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Reynolds urges MPs “not to invent problems that don’t exist”. He says the talks with the US are focused on “goods and services in the main”.
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Back in the Commons Lisa Smart (Lib Dem) asked Reynolds if the government would cut the digital services tax (DST) as part of its economic deal with the US.
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Reynolds said he would not discuss the specifics of the negotiations. But he went on:
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n
Making sure any tech company – not just a US tech company, any tech company – pays a fair rate of taxation in the UK for the economic activity that they have in the UK is something all parts of the British government are committed to, and [Smart] doesn’t need to be worried about that.
n
I would just say that there’s always going to be, in any discussion, a lot of issues that need to be dealt with, and in the main, those are trade issues.
n
I understand there’s all kinds of speculation. Speculation isn’t always correct, and I would just ask all colleagues to bear that in mind, understand we can’t publicly, in a negotiation like this, share every single aspect of it.
n
But if she’s worried about US companies, or any tech companies paying the right rate of tax in the UK, I can tell that’s something we’re deeply committed to.
n
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In the Commons Blake Stephenson (Con) says the Trump tariffs will make “everyone poorer”. He says it is noteworthy that Reform UK MPs “have not bothered to turn up to share in our disappointment”.
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Reynolds agrees, saying he is right to note the “conspicuous absence” of Nigel Farage and his colleagues.
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Ben Quinn is a senior Guardian reporter.
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Keir Starmer has accused Reform UK of “fawning over Putin” as the prime minster used Labour’s local elections launch to turn maximum fire on Nigel Farage’s party over foreign relations and the NHS.
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In a sign of how Labour views Reform as potentially a greater threat than the Tories, Starmer devoted more time to hitting out at Reform than at the Conservatives.
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Labour chose a Derbyshire county council area voted the worst in Britain for potholes as location for the launch, during which Starmer accused the Tory-controlled local authority of being responsible for potholes and anti social behaviour.
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But Starmer spared most of his ammunition for Reform, listing the rightwing voting record of the party’s MPs on workers rights and its position on the NHS.
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“They claim to be the party of patriotism. I’ll tell you this, there’s nothing patriotic about fawning over Putin,” he said, during a speech and a Q&A with reporters where he used the phrase “fawning over Putin” three times.
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Starmer launching Labour’s local elections campaign at a distribution centre for Peak Pharmacy in Chesterfield.”,”caption”:”Keir Starmer launching Labour’s local elections campaign at a distribution centre for Peak Pharmacy in Chesterfield.”,”credit”:”Photograph: Jonathan Brady/PA”}}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1743681480000,”blockCreatedOnDisplay”:”07.58 EDT”,”blockLastUpdated”:1743681747000,”blockLastUpdatedDisplay”:”08.02 EDT”,”blockFirstPublished”:1743681747000,”blockFirstPublishedDisplay”:”08.02 EDT”,”blockFirstPublishedDisplayNoTimezone”:”08.02″,”title”:”Starmer repeatedly accuses Farage of ‘fawning over Putin’ at Labour local elections campaign launch”,”contributors”:[{“name”:”Ben Quinn”,”imageUrl”:”https://i.guim.co.uk/img/uploads/2019/11/14/Ben_Quinn.jpg?width=300&quality=85&auto=format&fit=max&s=d7db834a96f161acdbfd6547d3606faa”,”largeImageUrl”:”https://i.guim.co.uk/img/uploads/2019/11/14/Ben_Quinn.png?width=300&quality=85&auto=format&fit=max&s=297a1d09bee05d7004e7a46737ffc547″}],”primaryDateLine”:”Thu 3 Apr 2025 11.09 EDT”,”secondaryDateLine”:”First published on Thu 3 Apr 2025 04.06 EDT”},{“id”:”67ee75a88f08dc205ac356c1″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The US tariff announcement is difficult for Reform UK because the party, and its leader, Nigel Farage, are closely identified with Donald Trump, and Trump was deeply unpopular with British voters (including Reform UK supporters) even before yesterday. The tariffs will probably make him ever more toxic.
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Reform does not seem to have issued any statement on the tariffs announcement last night.
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But this morning Farage posted this on social media.
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n
10% tariffs from the USA are bad news, but better than 20% for EU members.
n
If the Tory government had delivered quickly on Brexit we would have had a free trade deal years ago.
n
This deal is still achievable.
n
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Ed Davey, the Lib Dem leader, responded with this.
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n
If you’re such good mates with Trump, how about you pick up the phone and tell him to drop the tariffs?
n
The US hit countries they have trade deals with too. But we can always count on you to play the loyal sidekick to the bully Trump.
n
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Munira Wilson (Lib Dem) asks Reynolds to refuse to water down “in any way, shape or form” the Online Safety Act.
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Reynolds says his talks with his US counterpart have not covered this issue.
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And he says the US “is not seeking to make our children unsafe”. He goes on:
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n
I think sometimes the Liberal Democrats are inventing problems to try and propose that they are the solution to them. This is a conversation about trade, and I think it’s just vitally important we keep it in that important and appropriate terms.
n
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Q: Will your trade deal include concessions to US tech companies on online safety (see 10.49am), and tax cuts for US tech billionaires?
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Starmer says only this week he has been speaking about how important online safety is.
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He will act in the national interest, he says.
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But it is the national interest to make sure that young people are safe online. That is why the drama Adolescence was so powerful, he says.
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n
When it comes to online safety, I’ve recently, even in the last few days, made it clear how important I think online safety is. We had a round table with the writer and CO producer of Adolescence on Monday. I think it was very powerful session which reinforced, yet again, the risks and threats of social media, particularly in that case with young boys, young children, young people.
n
Of course, we have to act in the national interest, but it’s also in the national interest to make sure our young people are safe when they’re online.
n
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Starmer does not address the second point of the question – about the digital services tax being revised.
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Starmer at Labour’s local elections campaign launch in Chesterfield.”,”caption”:”Keir Starmer at Labour’s local elections campaign launch in Chesterfield.
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Ben Obese-Jecty (Con) asks Reynolds how long he thinks it will take to negotiate an economic agreement with the US.
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Reynolds says he shadowed a lot of Tory business secretaries, and some of them made promises on trade negotations. He says that was a mistake, because it means you are under pressure to agree a deal regardless of whether it is a good one.
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But he says there is “no country in the world further advanced in the talks they having with the United States”.
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Andrew Griffith, the shadow business secretary, responded to Jonathan Reynolds. The cross-party tone adopted by the Conservatives when Kemi Badenoch was tweeting (see 11.29am) did not last long. Griffith said that Tories would “support the government where it acts in the national interest”, but mostly his speech was highly critical.
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- n
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Griffith said the government got “no special favours” from the US. He said:
n
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n
This is also a moment for honesty and telling the truth. The government, sadly got no special favours from the White House last night. The secretary of state refers to vindication. This is no vindication at all. We’re in precisely the same band as the Congo, Costa Rica, Kosovo and the Christmas islands. In fact, I count over 125 countries and territories that have the same tariff levels as the US as we now do so not that special.
n
“,”elementId”:”0dcb1ed6-3681-4d25-abeb-5b74af0778d8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
- n
He said the Trump decision was a “vindication” for Brexiters.
n
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n
Last night was a vindication of those who were pilloried and abused for wanting our country to have the freedom to decide our own trade policy. If Labour and the Liberal Democrats had their way, we’d still be in the EU. As the prime minister acknowledged, this morning, thousands of British jobs have been saved today as the result.
n
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- n
- n
He said the tariffs made it even more important for the government to shelve the employment rights bill, that would increase costs for business.
n
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Reynolds says he is now opening a consultation on possible retaliatory tariffs.
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n
It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths.
n
However, we do reserve the right to take any action we deem necessary if a deal is not secured.
n
To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table.
n
We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response.
n
This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.
n
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Reynolds stresses that retaliatory tariffs are only an option, and that the government still wants an economic deal instead.
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n
If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from that will be lifted.
n
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Reynolds says further information about the consultation will be on the gov.uk website later today.
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Reynolds says he has been engaged in talks with the US on a new economic relationship.
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n
[A deal] would deepen our economic relationship on everything from defence, economic security, financial services, machinery, tech and regulation.
n
There are clear synergies between the US and UK markets, and this is reflected in the fair and balanced trading relationship that already exists between our two countries.
n
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The talks will continue.
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And a deal is not just possible, but favourable to both countries, he says.
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Reynolds says some MPs have offered “simple answers”. But this is wrong, he says.
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n
I have heard some members cling to the security of simple answers and loud voices.
n
I understand the compulsion, but I caution members of this house to keep calm and remain clear-eyed on what is in our national interest, not to simply proclaim that we follow the actions of other countries.
n
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Jonathan Reynolds, the business secretary, is making a statement to MPs about the Trump tariffs.
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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.
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He says the UK is subject to 10% tariffs – the lowest rate.
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This is “disappointing”, he says.
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But he says he will tell MPs how the UK can navigate this.
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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.
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Carla Denyer, the Green co-leader, said:
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n
We need to work together to oppose Trump’s divide-and-rule tactics.
n 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.
n 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.
n 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.
n
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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:
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n
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.
n
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.
n
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.
n
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Kemi Badenoch has been tweeting about President Trump’s tariffs this morning.
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Rather optimistically, she is offering to help the government negotiate a trade deal with the US. She says:
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n
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.
n
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)
n
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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.
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But Badenoch also criticises the Trump tariffs quite directly. She says:
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n
If we fail to learn the lessons of history we will be doomed to repeat them.
n
President Trump’s tariffs will not make the US wealthier but they will make all of us poorer.
n
Ronald Reagan understood this because he lived through when it happened before
n
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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.
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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.
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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.
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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:
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n
We are dismayed and appalled by reports that the Online Safety Act could be watered down to facilitate a US trade deal.
n
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.
n
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?
n
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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.
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Matthew Sowemimo, associate head of policy for child online safety at the NSPCC, said:
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n
The Online Safety Act offers a foundation that we believe will vastly improve children’s experiences online.
n
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.
n
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Jonathan Reynolds, the business secretary, has argued that people interpreting the Trump tariff announcements as some sort of Brexit bonus are missing the point.
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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.)
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But, when asked about this claim on Times Radio, Reynolds replied:
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n
I think anyone trying to use this to fight the kind of perennial historical political debates in the UK has missed the point.
n
This is … a really significant change to how the global trading system operates and the US’s role within it.
n
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.
n
But, look, this is much bigger than the UK’s relationship to the European Union and we’ve got to recognise that.
n
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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.
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British and US negotiators are reportedly very close to finalising a deal, but it has yet to be signed off by President Trump.
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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
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n
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 …
n
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.
n
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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.
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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”.
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He also said he wanted to ultimately make the trade relationship with the US stronger.
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n
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.
n
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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.)
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Speaking to Sky News this morning, Jonathan Reynolds, the business secretary, said that business leaders were telling government not to overreact. He said:
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n
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 …
n
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’.
n
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.
n
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Reynolds.”,”caption”:”Jonathan Reynolds.”,”credit”:”Photograph: Peter Nicholls/Getty Images”}}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1743669800000,”blockCreatedOnDisplay”:”04.43 EDT”,”blockLastUpdated”:1743670198000,”blockLastUpdatedDisplay”:”04.49 EDT”,”blockFirstPublished”:1743670176000,”blockFirstPublishedDisplay”:”04.49 EDT”,”blockFirstPublishedDisplayNoTimezone”:”04.49″,”title”:”Business leaders are telling government to stay calm and ‘don’t overreact’ to US tariffs, Jonathan Reynolds says”,”contributors”:[],”primaryDateLine”:”Thu 3 Apr 2025 11.09 EDT”,”secondaryDateLine”:”First published on Thu 3 Apr 2025 04.06 EDT”},{“id”:”67ee46398f08188975c6463f”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The UK is not getting special treatment from Donald Trump, the Conservative party says.
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Chris Philp, the shadow home secretary, told LBC this morning that he did not accept the UK had “got off lightly”. He explained:
“,”elementId”:”56e7cf8f-0e27-44de-92da-cb940c49c5ff”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
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.
n
These tariffs are based on essentially reciprocation of what America thinks they’re being charged by other countries.
n
This is really bad for our economy. It’s going to put jobs and growth at risk.
n
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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:
“,”elementId”:”c1525e2d-46e3-421d-9f92-121121e4efd4″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
This is disappointing news which will worry working families across the country.
n
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.
n
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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.
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Griffith also argued that the announcement contained evidence of a Brexit bonus.
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n
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.
n
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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’.
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Here is Pippa Crerar’s overnight story about the Trump announcement.
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This morning Starmer has issued a response in comments to business leaders in Downing Street. Here are the main points.
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- n
- n
Starmer said that the government would act with “cool and calm heads” as it decides how to respond to Trump’s tariffs “in the coming days and weeks”. He said:
n
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n
I want to be crystal clear – we are prepared.
n
Indeed, one of the great strengths of this nation is our ability to keep a cool head.
n
I said that in my first speech as prime minister and that is how I govern.
n
That is how we have planned and that is exactly what is required today …
n
That is how we have acted – and how we will continue to act. With pragmatism. Cool and calm heads.
n
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- n
- n
He said there would be “an economic impact” from the tariffs on the UK. But he did not say how serious they would be.
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He insisted that has “a range of levers” available that it can use in response, and he said retaliatory tariffs were not “off the table”.
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We move now to the next phase of our plan …
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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.
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As I say – our intention remains to secure a deal.
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But nothing is off the table.
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Ministers hope that an economic deal with the US could lead to tariffs being reduced or removed.
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Starmer said he would not agree an economic deal with the US if he did not think it was good for the UK.
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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.
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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.
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Starmer said that he would be guided only by the UK national interest.
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Last night, the President of the United States, acted for his country. That is his mandate.
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Today, I will act in Britain’s interests, with mine …
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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.
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In the interests of putting money in the pockets of working people. Nothing else will guide me. That is my focus.
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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.
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Here is the agenda for the day.
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9.30am: Lisa Nandy, the culture secretary, takes questions in the Commons.
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11.30am: Keir Starmer and Angela Rayner launch Labour’s local elections campaign at an event in the East Midlands.
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11.30am: Downing Street holds a lobby briefing.
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Around 11.30am: Jonathan Reynolds, the business secretary, makes a statement to MPs about the Trump tariffs.
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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.
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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.
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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.
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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.
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Key events
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The Liberal Democrats have described today’s government consultation on retaliatory tariffs against the US as “too little, too late”. Clive Jones, the Lib Dem trade spokesperson, said:
It is right that all options are on the table in response to Trump’s destructive trade war, but what the government has put forward is too little, too late.
This is work that should have been done as soon as Trump entered office and it appears ministers have been caught on the hop by this announcement.
It is time for UK to engage with our Commonwealth and European allies and bring together a coalition of the willing to stand tall against Trump’s trade war and protect our national interest.
Starmer says Trump tariffs are start of ‘new era’, and not just ‘short-term tactical exercise’
Some commentators have assumed that President Trump is just using tariffs as a negotiating ploy. Given that he has announced tariffs on Canada and Mexico, only to cancel them very quickly, there is a theory that he is doing the same thing again, only on a global scale. Alternatively, there is a view that a prolonged, negative reaction – falling share prices, rising inflation, higher unemployment? – could lead him to change his mind quite soon.
During the Q&A at the Labour local elections campaign launch earlier, Keir Starmer in effect rejected all these theories. He said that what Trump was doing was the start of “a new era”.
And he explicitly compared the challenge posed by Trump’s economic policies to the challenge posed by his security policies, which have led to European countries ramping up defence spending.
In response to a question from Sky’s Beth Rigby, Starmer said:
There’s a really important moment here that we need to understand, because over the last few months we’ve been talking about a new era when it comes to defence and security, and recognising that we are in a changing world, going into a new era, and therefore we have to act and lead differently.
We’re at a similar point for trade and the economy. This is not just a short-term tactical exercise. It is the beginning of a new era.
We need to understand that, just as we’ve understood it for defence and security. We have to understand the changing world when it comes to trade and the economy.
And I’m very concerned that we get this argument out there because it means that we have to adapt in ways which go beyond the mere question of tariffs.
And that’s why I’ve instructed my team to go further and faster on what we need to do to put more resilience and more strength into our economy.
But Starmer did not really explore what the policy implications of this were. In his comments about strengthening the economy, he mostly spoke about things the government is already doing, such as planning reform. Some parties, like the Liberal Democrats, the Green party and Plaid Cymru agree with Starmer about the UK facing a new era, and argue that it is one that requires rejoining the EU single market or the customs union, but Starmer has shown no inclination that he agrees, and instead says the UK should not choose between the US and Europe.
Keir Starmer
Plaid Cymru says the government should respond to the Trump tariffs by cutting trade barriers with the EU. Speaking in the Commons earlier, Liz Saville Roberts, the Plaid leader at Westminster, said:
Some commentators are fawning over a 10% tariff simply because our nearest neighbours have been hit worse.
Let’s get real here. The 25% tariff on steel and aluminium will hit Wales’s biggest export to the US – machinery and transport equipment.
And it’s a fact that the EU is Wales’s greatest trading partner with Welsh exports valued at £11.2bn.
In the face of an American president with an obsession with international economic revenge … it is economic common sense to accelerate scrapping trade barriers with Europe.
Luton airport allowed to double capacity after UK government overrules planners
Luton Airport will be allowed to almost double in capacity after the government overruled planning inspectors who recommended blocking the scheme on environmental grounds, Gwyn Topham reports.
On Wall Street, where the market has just opened, share prices are tumbling. Graeme Wearden has the details on his business live blog.
Government publishes 417-page list of US goods that could be affected by retaliatory tariffs as it opens consultation
The government has launched its online consultation on potential retaliatory tariffs against the US. There are details about how to respond here.
It includes a 417-page list of US goods that might be subject to tariffs. The government wants to know from businesses how they would be affected by particular tariffs. In its news release, the Deparment for Business and Trade (DBT) says:
UK companies are being invited to give their views on what any future UK response should look like by providing feedback to questions asking them the average value of their US imports, the impact of any possible UK tariffs and how they would adjust to them.
The department says the fact that an item is on the 417-page list “does not mean that it will appear in any UK tariff response, should the UK choose to impose tariffs on US goods at all”.
It also says the government would not impose tariffs on “products in the wider public interest issues such as medical supplies and military equipment”.
The consultaton will run for four weeks. But the government is not promising a speedy decision when it closes, on Thursday 1 May. “Once the request for input closes, the government will reflect on the feedback and consider how best to respond,” the department says.
The department also says tariffs are a “last resort”. Ministers are still hoping to a negotiate a deal with the US on trade that would lead to the current tariffs imposed on the UK being reduced or eliminated.
Business groups back Starmer’s ‘cool and calm’ response to Trump tariffs
Business groups have strongly welcomed the government’s decision not to announce immediate retaliatory tariffs against the US, but to instead keep talking to the US about a trade deal that might lead to tariffs being removed. One organisation, the CBI, even adopted Keir Starmer’s language about being “cool and calm”. (See 9.06am.)
This is what three of the leading business groups are saying.
From Rain Newton-Smith, CEO at the CBI
Today’s announcements are deeply troubling for businesses and will have significant ramifications around the world.
A cool and calm reaction from the UK government is the right response: UK firms need a measured and proportionate approach which avoids further escalation. Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices.
From Emma Rowland, trade policy adviser at the Institute of Directors
The implementation of these ‘Liberation Day’ tariffs will be a blow to British businesses, eliminating any hopes that the UK would be able to avoid the crosshairs of the global trade war …
The UK government has so far sought to pursue constructive engagement with the US administration and with other trading partners. We are supportive of this pragmatic and level-headed approach. The UK benefits from being an open trading nation, with strongly integrated international links. The IoD support the government’s efforts to sustain the position of UK exporters in an increasingly fragmented global economy.
From Shevaun Haviland, director general of the British Chambers of Commerce
The government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.
But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on businesses communities across the world.
John Swinney tells MSPs Scottish government will stand ‘shoulder to shoulder’ with firms hit by tariffs
Severin Carrell
Severin Carrell is the Guardian’s Scotland editor.
John Swinney, Scotland’s first minister, has pledged to “stand shoulder to shoulder” with Scottish firms facing the 10% import tariffs proposed by President Trump.
He told MSPs during first minister’s questions he will meet Scotch Whisky Association officials in New York in coming days, when he takes part in the annual Tartan Week celebrations there, to discuss “the very significant issues” facing the sector.
Swinney was questioned by Russell Findlay, the Scottish Conservative leader, over the Scottish government’s “short sighted” decision to cancel an export strategy devoted to US trade last year.
The first minister sidestepped that specific point but insisted Scotland’s enterprise and export agencies were heavily engaged in promoting trade with the US, while Scottish ministers were closely cooperating with the UK government.
Scottish whisky producers sold nearly £1bn worth of produce in the US last year, roughly a fifth of the sector’s overall production, while Scottish salmon producers exported £225m last year to the US.
Swinney said:
The imposition of tariffs isn’t good news. It will be damaging for economic activity in Scotland, the UK, but also across the world and there will also be negative implications for the people of the United States.
I can assure Mr Findlay that this government will leave no stone unturned to make sure it can take forward the concerns of industry and work with the UK government.
No 10 says ‘basic protections’ for children in Online Safety Act not up for negotiation
At the Labour local elections launch this morning Keir Starmer strongly played down any suggestion that the Online Safety Act would be watered down as part of a UK/US economic deal – while not quite saying it would not feature at all. (See 12.38pm.) It has been reported that the UK could be offering a review of the legislation. (See 10.49am.)
At the Downing Street lobby briefing the PM’s spokesperson delivered a similar message – saying “basic protections” were not up for negotiaton. He said:
We’ve said previously our Online Safety Act is all about protecting children online, making sure what is illegal offline is illegal online. The technology secretary has reiterated that our basic protections for children and vulnerable people are not up for negotiation. That remains the government’s position.
Here is Guardian video of Keir Starmer giving his response this morning to the Trump tariffs announcement.
Reynolds urges MP ‘not to invent problems that don’t exist’, when asked about Online Safety Act being part of US deal
Bobby Dean (Lib Dem) says when US rightwingers talk about freedom of speech, they mean they want US tech companies to continue to be free to impose harmful content on children. He asks Reynolds to rule out the Online Safety Act being part of UK/US economic deal.
Reynolds urges MPs “not to invent problems that don’t exist”. He says the talks with the US are focused on “goods and services in the main”.
Reynolds say US tech companies will still have to pay ‘fair rate of tax’ in UK – without ruling out changes to digital services tax
Back in the Commons Lisa Smart (Lib Dem) asked Reynolds if the government would cut the digital services tax (DST) as part of its economic deal with the US.
Reynolds said he would not discuss the specifics of the negotiations. But he went on:
Making sure any tech company – not just a US tech company, any tech company – pays a fair rate of taxation in the UK for the economic activity that they have in the UK is something all parts of the British government are committed to, and [Smart] doesn’t need to be worried about that.
I would just say that there’s always going to be, in any discussion, a lot of issues that need to be dealt with, and in the main, those are trade issues.
I understand there’s all kinds of speculation. Speculation isn’t always correct, and I would just ask all colleagues to bear that in mind, understand we can’t publicly, in a negotiation like this, share every single aspect of it.
But if she’s worried about US companies, or any tech companies paying the right rate of tax in the UK, I can tell that’s something we’re deeply committed to.
Reform UK MPs criticised for missing Commons statement about Trump tariffs
In the Commons Blake Stephenson (Con) says the Trump tariffs will make “everyone poorer”. He says it is noteworthy that Reform UK MPs “have not bothered to turn up to share in our disappointment”.
Reynolds agrees, saying he is right to note the “conspicuous absence” of Nigel Farage and his colleagues.
Starmer repeatedly accuses Farage of ‘fawning over Putin’ at Labour local elections campaign launch
Ben Quinn
Ben Quinn is a senior Guardian reporter.
Keir Starmer has accused Reform UK of “fawning over Putin” as the prime minster used Labour’s local elections launch to turn maximum fire on Nigel Farage’s party over foreign relations and the NHS.
In a sign of how Labour views Reform as potentially a greater threat than the Tories, Starmer devoted more time to hitting out at Reform than at the Conservatives.
Labour chose a Derbyshire county council area voted the worst in Britain for potholes as location for the launch, during which Starmer accused the Tory-controlled local authority of being responsible for potholes and anti social behaviour.
But Starmer spared most of his ammunition for Reform, listing the rightwing voting record of the party’s MPs on workers rights and its position on the NHS.
“They claim to be the party of patriotism. I’ll tell you this, there’s nothing patriotic about fawning over Putin,” he said, during a speech and a Q&A with reporters where he used the phrase “fawning over Putin” three times.
Farage claims, if Tories had done better with Brexit, UK would have avoided tariffs because US deal would be in place
The US tariff announcement is difficult for Reform UK because the party, and its leader, Nigel Farage, are closely identified with Donald Trump, and Trump was deeply unpopular with British voters (including Reform UK supporters) even before yesterday. The tariffs will probably make him ever more toxic.
Reform does not seem to have issued any statement on the tariffs announcement last night.
But this morning Farage posted this on social media.
10% tariffs from the USA are bad news, but better than 20% for EU members.
If the Tory government had delivered quickly on Brexit we would have had a free trade deal years ago.
This deal is still achievable.
Ed Davey, the Lib Dem leader, responded with this.
If you’re such good mates with Trump, how about you pick up the phone and tell him to drop the tariffs?
The US hit countries they have trade deals with too. But we can always count on you to play the loyal sidekick to the bully Trump.
Reynolds says Online Safety Act has not been part of his trade talks, adding US ‘not seeking to make children unsafe’
Munira Wilson (Lib Dem) asks Reynolds to refuse to water down “in any way, shape or form” the Online Safety Act.
Reynolds says his talks with his US counterpart have not covered this issue.
And he says the US “is not seeking to make our children unsafe”. He goes on:
I think sometimes the Liberal Democrats are inventing problems to try and propose that they are the solution to them. This is a conversation about trade, and I think it’s just vitally important we keep it in that important and appropriate terms.
Source: www.theguardian.com