LONDON: Prime Minister Keir Starmer has pledged government support to British businesses struggling due to US President Donald Trump’s newly imposed tariffs. He warned that action might be necessary to shield key sectors from the escalating trade tensions.
In an article for The Telegraph, Starmer declared that the UK government stands ready to use industrial policy to protect businesses from the growing trade disruptions. “Some may feel uncomfortable about this, the idea of state intervention shaping the market, but we cannot stick to outdated views as the global landscape rapidly changes,” he wrote.
While the government continues to seek a trade deal with the US, possibly including tariff exemptions, Starmer emphasized the need to do whatever is necessary to safeguard the UK’s interests.
Although the UK faced a relatively lighter tariff of 10% compared to other nations, the broader trade conflict still poses risks to Britain’s open economy. Starmer also highlighted plans to enhance domestic competitiveness and reduce exposure to future global shocks, including boosting alliances and eliminating trade barriers.
The government may introduce emergency measures, such as regulatory reforms and targeted tax incentives, to aid affected industries. For example, Jaguar Land Rover has paused its car shipments to the US for a month due to the tariffs, which raises concerns about the impact on the automotive sector, a major employer in the UK.
Starmer reassured that the government would adopt a measured approach toward the tariffs but stressed that all options for response remain open. In response, the UK released a list of US goods it may target with retaliatory tariffs if necessary.
