Friday, April 18, 2025
Friday, April 18, 2025

UK Pledges to Shelter Businesses from US Tariffs

British Prime Minister Keir Starmer announced plans to shelter UK businesses from President Donald Trump’s new tariff policies, suggesting potential state intervention for industries most affected.

“We stand ready to use industrial policy to help shelter British business from the storm,” Starmer wrote in the Telegraph newspaper. “But we simply cannot cling on to old sentiments when the world is turning this fast.”

Government Priorities

While securing a US trade deal with tariff exemptions remains the priority, Starmer emphasized he would do “everything necessary” to protect British interests.

Britain received the lowest import duty rate of 10% in Trump’s recent announcement, but experts warn a global trade war would still damage the UK’s open economy.

“This week we will turbocharge plans that will improve our domestic competitiveness, so we’re less exposed to these kinds of global shocks,” Starmer said, adding his government wants to strengthen alliances and reduce trade barriers.

Potential Measures

The Telegraph reported that Starmer’s government might introduce emergency reforms to reduce regulatory red tape and possibly implement targeted tax breaks for affected sectors.

British automaker Jaguar Land Rover announced Saturday it would pause car shipments to the US for a month due to the tariffs, raising concerns about impacts on an industry employing 200,000 people in the UK.

Measured Response

Writing in the newspaper, Starmer reiterated his “cool-headed” approach rather than immediate retaliation, though he noted: “All options remain on the table.”

Britain has already published a 400-page list of US goods it could target in any potential retaliatory tariff response.

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