Starmer vows to protect UK businesses from US tariffs

On April 7, 2025, Prime Minister Keir Starmer of the United Kingdom announced his intention to use industrial policy to shield British businesses from the impact of newly imposed tariffs by the United States. Following the introduction of Donald Trump's 10% baseline tariff, which took effect that very day, Starmer articulated his commitment to negotiate an economic deal with the US to alleviate some of the tariff pressures. The prime minister's remarks reflected a broader concern regarding the potential market disruptions that could stem from the tariffs, including their immediate effects, particularly on companies such as Jaguar Land Rover, which halted its US shipments in response to a 25% tariff on car imports. Starmer acknowledged the need for state intervention during times of economic uncertainty, advocating for direct government involvement to stabilize the market. He emphasized that historical apprehensions about state intervention must be set aside in the face of rapidly changing global circumstances. Additionally, the UK plans to strengthen alliances and reduce trade barriers with other nations to bolster its economic resilience against global shocks. As demonstrated by the tumultuous economic landscape influenced by the pandemic, Brexit, and fluctuating energy prices, Starmer’s approach underscores a significant shift in the UK government’s strategy toward trade and international relations. Overall, Starmer's initiatives signal a proactive approach in navigating the complexities presented by the tariffs while aiming to safeguard the interests of the British business sector amidst a challenging economic environment.