Sir Keir Starmer has said the UK is “preparing for all eventualities” and “ruling nothing out” as global stock markets nervously await the imposition of Donald Trump’s so-called “Liberation Day” import tariffs.
Asian and European stocks stuttered on Wednesday morning amid fears from investors and world leaders that Mr Trump’s plans could intensify a global trade war. Germany saw the biggest dip as the DAX fell 1.3 per cent by midday, with the UK’s FTSE100 also down 0.8 per cent. Both recouped some losses in the early afternoon.
The White House has provided no details about the size and scope of Mr Trump’s trade barriers, which he is set to announce at 9pm, after which reciprocal tariffs on countries imposing duties on US goods will immediately take effect.
As analysts at the leading IPPR think-tank warned that tariffs could “completely destabilise the UK car-manufacturing industry” and put 25,000 UK jobs at risk, Sir Keir told MPs that a trade war with the US was “in nobody’s interest”.
“The country deserves – and we will take – a calm, pragmatic approach,” Sir Keir told the Commons, adding: “Our decisions will always be guided by our national interest, and that’s why we have prepared for all eventualities – and we will rule nothing out.”
Trump ‘Liberation Day’ live
As well as live updates here tonight, you can follow live coverage of the tariffs announcement on our US blog here.
Watch: UK entering difficult period, minister warns
UK entering difficult period as country awaits Trump Liberation Day, minister warns
Tariffs ‘in bands of 10%, 15% and 20%’
President Trump’s tariffs will be grouped in bands of 10 per cent, 15 per cent and 20 per cent, depending on the country and the industry, according to Sky News.
No official confirmation of the tariffs has yet been revealed.
Trump warned of recession risk
US House of Representatives Minority Leader Hakeem Jeffries has warned Mr Trump’s tariffs will drive the US into recession.
The new tariffs will increase prices, the Democrat said.
“This is not Liberation Day,” he said. “It’s Recession Day in the United States of America.
“That’s what the Trump tariffs are going to do: Crash the economy, which has been happening since January 20 of this year,” he continued.
US markets recover modestly
US stock indexes recovered from morning losses to trade modestly higher as investors awaited President Trump’s tariff announcements.
Volatility has gripped US markets in recent weeks as investors speculate about the scope of tariffs and their effect on the global economy, inflation and corporate earnings.
Nearly half of voters disapprove of Starmer’s handling of tariff war
There’s more bad news for Sir Keir Starmer as a new poll suggests the public are less than impressed with his response to a looming trade war.
A new poll by YouGov finds just 22 per cent think the government is handling the issues around tariffs well – while 44 per cent disagree and 33 per cent say they don’t know.
The pollsters asked more than 5,000 adults on Wednesday.
UK still at risk from tariffs if US trade deal secured, warns chancellor
The UK would not be “out of the woods” on tariffs even if it could secure an economic deal with the United States, the Chancellor has told MPs.
Rachel Reeves told the Commons Treasury Committee that the main impact on the British economy would be from global tariffs rather than UK-specific ones, thanks to depressed demand and higher inflation in other countries.
She said: “I think that’s really important to understand, because even if we are able to secure an economic deal with the United States – which we very much want to secure and are working hard to secure that – even if that’s possible, (it) doesn’t mean somehow that we are out of the woods and not impacted by tariffs.
“So we don’t just want to see an agreement between the UK and the US, we want to see free trade, fair trade continue.”