Starmer admits UK will face Trump tariffs this week as US president sparks global recession fears: Live - Markets tumble across UK, Europe and Asia after Trump announced he is set to impose a barrage

Shadow Justice Secretary has launched a scathing attack on Prime Minister Sir Keir Starmer after Britain was hit with a 10 per cent tariff by US President Donald Trump. Delivering his list of reciprocal tariffs to the world,

Sir Keir Starmer has said the Government has “prepared for all eventualities” and is working with companies likely to be hit by US President Donald Trump’s tariffs.Mr Trump is expected to slap import taxes on goods going to the US from around the world in a White House statement at 9pm.British businesses are braced for the impact of the president’s “liberation day” tariffs, which have the potential to derail the UK Government’s hopes for economic growth.At Prime Minister’s Questions, Sir Keir told MPs: “Let me be clear with the House, a trade war is in nobody’s interests and the country deserves – and we will take – a calm, pragmatic approach.“That’s why constructive talks are progressing to agree a wider economic prosperity deal with the US.“That’s why we’re working with all industries and sectors likely to be impacted.“Our decisions will always be guided by our national interest, and that’s why we have prepared for all eventualities, and we will rule nothing out.”The car industry has already learned its fate, with a 25% tariff on vehicles sent to the US – something which could cost an estimated 25,000 jobs in the UK.Intensive diplomatic efforts and negotiations on a UK-US economic deal are not expected to be enough to spare British exporters from Mr Trump’s tariff plans.The imposition of tariffs will make British goods more expensive in the US, which is likely to reduce demand.Economists at the Office for Budget Responsibility have warned that US tariffs could eliminate Chancellor Rachel Reeves’s “headroom” against her day-to-day spending plans, requiring her to make more cuts or hike taxes to meet the rules she has set herself.The tariffs could knock up to 1% off the size of the UK economy if there is a full-blown trade war with the UK retaliating to Mr Trump’s measures.Analysis from the Institute for Public Policy Research (IPPR) suggested tariffs on car imports would put 25,000 UK jobs at risk and “completely destabilise the UK car manufacturing industry”.Although a deal will not be reached before Mr Trump’s announcement, UK negotiators are pursuing an agreement with the US focused on technology.Such a deal could include possible changes to the digital services tax – which imposes a 2% levy on the revenues of several major US tech companies – in exchange for a carve-out from the tariffs.Sir Keir did not deny that changes to the digital services tax are being considered.Easing access for US agricultural products to UK markets could also be on the table, although officials have insisted that food standards will not be lowered.Sentiment in the European financial markets, including London’s FTSE 100, was weak on Wednesday as investors awaited Mr Trump’s announcements.Retaliatory tariffs from the UK are not expected immediately, as efforts focus on striking a deal with the White House.But European Commission chief Ursula von der Leyen signalled Brussels was prepared to respond, saying “we have the power to push back”.It is not yet clear what Mr Trump will announce on Wednesday but his administration views the application of VAT as discriminating against US goods and could respond with a 20% tariff on imports from the UK.White House press secretary Karoline Leavitt said the new tariffs would take effect immediately, telling reporters: “April 2 2025 will go down as one of the most important days in modern American history.”

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Starmer and Reeves face grilling as Trump prepares ‘liberation day’ tariffs - Economists have warned US tariffs could wipe out the Chancellor’s ‘headroom’ against her debt rules, requiring more cuts or tax rises.