Not a Trade War, We Are Moving Forward Peacefully with the U.S. on the Right Track – British Prime Minister Keir Starmer

Not a Trade War, We Are Moving Forward Peacefully with the U.S. on the Right Track – British Prime Minister Keir Starmer

London, April 1, 2025: British Prime Minister Sir Keir Starmer has said that US-UK trade talks are "progressing well," and he has rejected a "knee-jerk" response to former President Donald Trump's proposed new tariffs.

In an interview with Sky News political editor Beth Rigby on Monday, Starmer stated, "We are working on an economic deal with the United States, and there has been rapid progress on that front." However, he acknowledged that "look, tariffs are probably coming. No one wants to admit it, no one wants a trade war."

The Prime Minister added, "But I have to act in the national interest, and that means all options must remain on the table. We are discussing an economic deal, and we are moving forward. These discussions typically take months or even years, but in just a few weeks, we’ve made significant progress, so I believe that responding calmly, organized, and without rushing is in the best interest of our country."

Downing Street announced on Monday that the UK could be hit with new US tariffs this week, as the deadline for a trade deal on British goods will pass. A 25% tariff on cars and car parts has already been announced, but the new tariffs will affect all types of export goods.

Trade and Business Minister Jonathan Reynolds told Sky News that he is "optimistic" these tariffs will be withdrawn soon. However, he warned, "The longer we don't find a potential solution, the more we’ll have to reconsider our position on tariffs, including possibly thinking about retaliatory tariffs."

Trump threatened tariffs on countries with the largest trade imbalances with the United States last week. However, he said on Saturday that these tariffs will be applied to all countries, though he did not specify which countries or industries would be impacted.

Trump is expected to announce his tariff plan at his second-term first Rose Garden press conference on Wednesday, according to the White House press secretary. He said, "Wednesday will be America's Liberation Day, as President Trump will proudly call it."

The UK's Office for Budget Responsibility (OBR) has stated that a 20% tariff increase on UK goods would reduce the size of the British economy by 1% and that tax hikes will soon be necessary this year.

World markets were mixed or down on Monday in anticipation of the tariffs, with the FTSE 100 stock exchange falling by about 1.3%, but it is expected to open about 0.4% higher on Tuesday, and Asian markets have also stabilized.