Keir Starmer has announced that the government will take steps to support key British industries as they navigate the economic difficulties caused by Donald Trump’s global tariffs.
In response to the 10% tariff imposed by the US on exports from the UK, Starmer plans to provide assistance to vulnerable sectors and to accelerate parts of the industrial strategy.
Starmer’s first significant intervention since the introduction of the new global economic policies by the US will include plans to give the automotive industry more flexibility in meeting the target to phase out sales of new petrol and diesel cars by 2030.
Manufacturers such as Aston Martin will be exempt from the target, and the sale of hybrid vehicles will be allowed until 2035, providing more time for the transition to electric vehicles.
Additional support for sectors impacted by the tariffs, including the life sciences industry, is expected to be announced later in the week. The support may include measures to stimulate growth and reduce bureaucratic hurdles.
Starmer stated in a speech in the West Midlands, “Global trade is being transformed, and we must adapt to reshape our economy and country through our plan for change. Our commitment to supporting British excellence is stronger than ever, and UK businesses and workers need a government that takes decisive action.”
Worldwide stock markets lost nearly $5 trillion in value following Trump’s tariff announcements last week, including a 10% tariff on imports into the US from the UK and a 20% tariff on goods from the EU.
Jaguar Land Rover has paused shipments to the US for a month to assess the implications of the new 25% tariff, which took effect on April 3rd.
Starmer spent the weekend in discussions with other world leaders, including those from the EU and Germany, to express his concerns about the tariffs and to explore ways to strengthen the UK’s economy and its international trading relationships.
Negotiations for trade deals with nations such as India and China are also ongoing, while efforts are being made to provide stability to British automotive brands like Rolls-Royce, Vauxhall, and Land Rover during this tumultuous period.
In light of these economic changes, Starmer is reconsidering key elements of the government’s economic policy. However, there is concern that his plans may not adequately address an impending budget shortfall, and additional spending cuts or tax increases by the Chancellor may be required.
Darren Jones, Chief Secretary to the Treasury, acknowledged the significant impact of these global changes on the UK economy but affirmed the government’s commitment to addressing these challenges by accelerating its plan for change at home.
Jones further stated that the 10% tariff facing the UK compared to the EU’s 20% rate could be seen as a “Brexit dividend.” He also emphasized that the government’s commitment to digital safety laws and protecting children online would not be compromised by potential trade deals with the US.
In response to the 10% tariff imposed by the US on exports from the UK, Starmer plans to provide assistance to vulnerable sectors and to accelerate parts of the industrial strategy.
Starmer’s first significant intervention since the introduction of the new global economic policies by the US will include plans to give the automotive industry more flexibility in meeting the target to phase out sales of new petrol and diesel cars by 2030.
Manufacturers such as Aston Martin will be exempt from the target, and the sale of hybrid vehicles will be allowed until 2035, providing more time for the transition to electric vehicles.
Additional support for sectors impacted by the tariffs, including the life sciences industry, is expected to be announced later in the week. The support may include measures to stimulate growth and reduce bureaucratic hurdles.
Starmer stated in a speech in the West Midlands, “Global trade is being transformed, and we must adapt to reshape our economy and country through our plan for change. Our commitment to supporting British excellence is stronger than ever, and UK businesses and workers need a government that takes decisive action.”
Worldwide stock markets lost nearly $5 trillion in value following Trump’s tariff announcements last week, including a 10% tariff on imports into the US from the UK and a 20% tariff on goods from the EU.
Jaguar Land Rover has paused shipments to the US for a month to assess the implications of the new 25% tariff, which took effect on April 3rd.
Starmer spent the weekend in discussions with other world leaders, including those from the EU and Germany, to express his concerns about the tariffs and to explore ways to strengthen the UK’s economy and its international trading relationships.
Negotiations for trade deals with nations such as India and China are also ongoing, while efforts are being made to provide stability to British automotive brands like Rolls-Royce, Vauxhall, and Land Rover during this tumultuous period.
In light of these economic changes, Starmer is reconsidering key elements of the government’s economic policy. However, there is concern that his plans may not adequately address an impending budget shortfall, and additional spending cuts or tax increases by the Chancellor may be required.
Darren Jones, Chief Secretary to the Treasury, acknowledged the significant impact of these global changes on the UK economy but affirmed the government’s commitment to addressing these challenges by accelerating its plan for change at home.
Jones further stated that the 10% tariff facing the UK compared to the EU’s 20% rate could be seen as a “Brexit dividend.” He also emphasized that the government’s commitment to digital safety laws and protecting children online would not be compromised by potential trade deals with the US.
