Keir Starmer vows to 'shelter' UK businesses from Trump's tariff storm

London: British Prime Minister Keir Starmer on Sunday vowed to "shelter" the UK's businesses from the storm unleashed in the wake of President Donald Trump’s flurry of global trade tariffs, even as he reiterated plans to pursue a trade deal with the US.

Writing in The Sunday Telegraph, Starmer said that nobody wins from a trade war and called for calm as the UK fights for the best trade deal. He reiterated that “all options remain on the table” as he indicated the possibility of state intervention to protect businesses.

“The economic consequences, here and across the globe, could be profound. We already have a balanced trading relationship with our American allies and work continues on a new economic prosperity deal,” writes Starmer.

“I will only strike a deal if it is right for British business and the security of working people. And I will continue to make the case for free and open trade, because turning our back on that now would be a grave mistake,” he said.

“We stand ready to use industrial policy to help shelter British business from the storm. Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided. But we simply cannot cling on to old sentiments when the world is turning this fast,” he added.

His intervention comes following days of turmoil in the stock markets, with the UK among the nations hit with a 10 per cent "baseline" import duty by Trump. Additionally, a 25 per cent tariff has been imposed on UK car exports, as well as steel and aluminium products. Tata Motors-owned British carmaker Jaguar Land Rover (JLR) confirmed a pause in its American shipments.

"The USA is an important market for JLR's luxury brands. As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans," JLR said in a statement on Saturday.

One of the UK’s biggest carmakers, the company exported around 38,000 cars to the US in the third quarter of 2024 as one of its major markets.

Trading across the world has been hit by Trump's tariff announcement at the White House earlier this week. He justified the move as being aimed at encouraging US consumers to buy more American goods and boost the domestic economy. But it triggered retaliatory tariffs from countries such as China and led to stocks plummeting amid fears of a global recession.

Business Secretary Jonathan Reynolds has told MPs in the House of Commons that the government would consult with businesses on how any UK retaliatory tariffs could affect them, as the Department for Business and Trade (DBT) published a 400-page list of American goods it could include in possible retaliation to the US tariffs.