Sir Keir Starmer has vowed to shelter the country’s interests after US president Donald Trump slapped sweeping tariffs on dozens of trading partners including the UK.
“We stand ready to use industrial policy to help shelter British business from the storm,” he wrote in the Sunday Telegraph.
It comes after the US president put a 10 per cent tariff on all UK goods exports to America, including a 25 per cent tariff on all British carmakers.
Labour minister Darren Jones said that a trade war was in “no-one’s interests” and said that globalisation as we’ve known it has come to an end. However Reuters has reported that the EU is considering retaliatory tariffs on $28 billion worth of US imports. A list of US goods that could be slapped with tariffs will reportedly be presented to EU countries late on Monday.
Meanwhile Jaguar Land Rover said it was suspending shipments to the US while it considers how to mitigate the cost of Mr Trump’s tariffs.
Taiwan will not impose reciprocal tariffs on the US
Taiwan President Lai Ching-te said on Sunday that Taiwan will not impose reciprocal trade tariffs against the United States, but will remove trade barriers and Taiwanese companies will gradually increase their investments in the country.
The president made the comments at a meeting with Taiwanese executives.
Musk seems to criticise chief supporter of Trump tariffs
Elon Musk has appeared to criticise the chief supporter of president Donald Trump’s tariffs Peter Navarro, the administrations trade adviser.
Senior White House aide Mr Navarro helped shape the president’s reciprocal tariff policy that tanked markets across the world.
Mr Musk responded to a video of Mr Navarro defending the tariff policy, posted to social media platform X. An X user had posted the video with a caption saying “Peter Navarro has a PhD in economics from Harvard.”
Mr Musk replied, saying: “A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/ brains>>1 problem”.
Another user replied, insisting that Mr Navarro was correct in his defense, but Mr Musk rejected that and questioned Mr Navarro’s practical economic experience.
“He aint built s***,” Mr Musk wrote.
Watch: Labour MP says Trump’s ‘Brexit dividend’ was ‘one’ benefit to leaving EU
French prime minister estimates Trump tariffs could cost France ‘more than 0.5% of GDP’
France’s prime minister François Bayrou has estimated that the tariff increases imposed by US president Donald Trump could cost France “more than 0.5 per cent of GDP”.
In an interview with Le Parisien, Mr Bayrou said that “the risk of job losses is absolutely significant, as is that of an economic slowdown and a halt to investment”.
“The destablisation he has created will weaken the global economy for a long time to come,” he added.
Britain could be at risk from Greek-style debt crisis, investors warn
Experts have warned that Britain’s debt leaves it vulnerable to the economic affects of president Donald Trump’s tariffs on the global economy.
Neil Robson, head of global equities at Columbia Threadneedle, said: “If you think about the problem of being very indebted, you can be as indebted as you like as long as your nominal growth is higher than your interest rate.
“But if ever your nominal GDP growth stalls – not just on a temporary basis – below your interest costs then you’re in a real negative spiral and it can move really quickly. We saw that with Greece during the great financial crisis.”
Bruno Schneller, the managing partner at Erlen Capital Management, added: “Mr Trump’s tariff blitz risks triggering a global stagflation shock – and for the UK, that’s a recipe for a gilt crisis.
“Slower growth, higher inflation and a jittery investor base could combine to push UK borrowing costs higher at the worst possible time. This isn’t just trade war fallout, it’s the kind of external shock that can crack already fragile debt markets”.
Israeli prime minister confirms visit to White House
Israel’s prime minister Benjamin Netanyahu will travel to Washington today ahead of a meeting with president Donald Trump on Monday.
Mr Netanyahu’s office confirmed the visit late on Saturday, saying: “PM Netanyahu will depart tomorrow for Washington following the invitation from US president Donald Trump. The two will discuss the tariff issue, the efforts to return our hostages, Israel-Turkey relations, the Iranian threat and the battle against the International Criminal Court”.
The statement continued: “The PM appreciates the personal and warm ties with president Trump and thanks him for the invitation to be the first leader to meet with him following the imposition of global tariffs, just as he was the first leader to meet with him following his entering the White House”.
LibDems call for parliamentary vote on any US-UK trade deal
The Liberal Democrats have called for a parliamentary vote on any trade deal between the UK and the US.
Deputy leader Daisy Cooper said: “MPs must be given a say on any government deal with Donald Trump.
“It would be deeply undemocratic if Parliament were to be sidelined on such a critical issue for the country.
“Both Conservative and Labour MPs should commit now to voting down any Trump deal that sells out British farmers and their high food standards or waters down our online safety rules.
“The government must not use our high food and animal welfare standards or the online safety of our children as pawns in a negotiation to appease Donald Trump.”
Trump advisor Stephen Miller suggests Europe should buy more American cars
A key Trump advisor Stephen Miller has hinted that Americans should be buying US cars over European and Japanese models, as tariff’s hit foreign car industries.
Deputy chief of staff for policy and homeland security Mr Miller posted on X on Sunday morning: “Why are American streets filled with cars from Europe and Japan but their streets are empty of American cars? Even as we provide defense and security for both?”
The US has imposed a 25 per cent tariff on the UK car industry, with Jaguar Land Rover deciding to pause shipments to America in April while they assess the impact.
Nissan Motor is also reportedly considering moving some domestic production of US-bound vehicles to the US, away from Japan.
The Nikkei reported on Saturday that Nissan plans to reduce production at its Fukuoka factory in western Japan and shift some manufacturing to the US to mitigate the impact of Trump’s tariffs.
Indonesia will not retaliate against US tariffs
Indonesia will not retaliate against US president Donald Trump’s trade tariff on Southeast Asia’s largest economy, its senior economic minister said on Sunday in the government’s first response to the levy.
Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions.
Be prepared for things to get worse in the global economy, minister warns
People should be prepared for things to be tougher in the global economy, a Treasury minister has suggested.
Chief Secretary to the Treasury Darren Jones was asked on the BBC’s Sunday With Laura Kuenssberg programme whether the public should be “prepared for things to be even tougher than they already are”.
Mr Jones said: “In the global economy, yes, but on the UK economy we’re trying to get ahead of these challenges.
“That’s why the plan for change is important, because it means that we can support businesses through industrial policy, we can support people through investment in the National Health Service, for example.
“It is right that we get ahead of that, so that the country is in a more, stronger and resilient place.”