PM Keir Starmer Pledges Strong Shield for UK Businesses Amid Rising US Tariffs

In a bold statement aimed at calming business fears, Prime Minister Sir Keir Starmer has vowed to shield British industries from a looming storm of US trade tariffs, warning that the UK must adapt rapidly in a shifting global economy.

Writing in The Sunday Telegraph, Sir Keir said he is ready to activate a robust industrial policy to protect key sectors, including automotive and steel, from what he described as “global shocks” stemming from US President Donald Trump's new wave of tariffs.

“We stand ready to use industrial policy to help shelter British business from the storm,” Starmer stated. “Some may feel uneasy about the state shaping the market, but the pace of change demands we act decisively.”

Trump's Tariff Wave Sends Shockwaves Through Global Markets

The United Kingdom is among several countries hit by a new 10% baseline import duty from the United States. In addition, targeted sectors—including British car manufacturers, steel, and aluminium—are facing even steeper tariffs of up to 25%. The tariff structure is set to intensify from April 9, with some nations expecting surcharges of up to 50%.

The White House maintains that the move is designed to boost domestic production and encourage American consumers to buy local. However, global markets have responded sharply. Stock indexes plummeted more than 5% last week amid fears of a trade war-induced global recession.

Jaguar Land Rover Halts US Shipments

In direct response to the tariff announcement, Jaguar Land Rover confirmed it would temporarily suspend shipments to the US. The company cited the need to assess how the new trade environment would affect operations and pricing.

Starmer Eyes Immediate Action and Long-Term Strategy

Sir Keir stressed that the UK cannot rely solely on trade diplomacy to soften the blow. While trade negotiations with the US remain a top priority, the prime minister confirmed that Britain would move quickly to strengthen domestic competitiveness and resilience.

An industrial strategy, promised in Labour’s general election manifesto, is expected to be unveiled this summer. However, key aspects of that plan may now be fast-tracked to support businesses facing immediate challenges.

“We simply cannot cling to old sentiments when the world is turning this fast,” Starmer added, signaling a shift in economic philosophy toward more strategic state involvement.

Tax Policy and Global Alliances Under Review

While the government has not ruled out additional tax increases in the autumn, Starmer pointed out that no such hikes were introduced during the recent Spring Statement. Meanwhile, the UK has signaled openness to trade retaliation, publishing a 400-page list of American goods that may face reciprocal tariffs.

The Department for Business and Trade noted that the proposed retaliatory list—covering around 27% of imports from the US—was curated to minimize economic disruption within the UK.

Business Secretary Jonathan Reynolds confirmed consultations with key industry stakeholders are already underway to assess the real-world impact of any tit-for-tat measures.

Calls for Stronger US Trade Ties Continue

Opposition leaders, including Conservative Party head Kemi Badenoch, have called on Starmer to negotiate a “deep and meaningful” trade deal with the US that prioritizes economic growth while preserving product and labor standards.

The UK currently exports nearly £60 billion in goods to the United States annually, with primary exports including machinery, vehicles, and pharmaceutical products.

Over the weekend, Starmer spoke with global leaders, including French President Emmanuel Macron, in an effort to build a united front. Both leaders agreed that a full-blown trade war would benefit no one but emphasized that “nothing should be off the table.”

Despite diplomatic overtures, UK households and businesses are also grappling with the immediate reality of a National Insurance rise for employers, which came into effect today—a move critics argue will add further pressure in already uncertain economic times.