Keir Starmer told business leaders at Downing Street that US tariffs would undoubtedly have an economic impact, but emphasized the need for ministers to maintain a “cool and calm” approach in their response. The decision comes after US President Donald Trump announced that 10% tariffs would be imposed on imports from the UK, with 25% tariffs applied to car imports specifically.

Tariffs of 10% represent the lowest rate by the US compared to 20% for the EU, a factor that provides some comfort to ministers. Starmer said that while the Prime Minister “acted in Britain’s interests,” the UK is still in a significantly better position compared to other areas affected by the tariffs.

Jonathan Reynolds, the trade secretary, stated that the government would not immediately retaliate against the tariffs, and remains open to negotiating an economic deal with the US to remove the tariffs entirely. “I do hope there’s a chance to take some lessons from that if we are successful for the wider world economy,” he told Sky News.

This sentiment aligns with a warning by the US Treasury Secretary, Scott Bessent, who advised against retaliation, stating that eventual tariff rates will be “at the high end” provided no retaliation occurs.

Ongoing discussions about UK food safety standards have also raised concerns, reigniting a dispute over the UK’s ban on US chlorine-washed chicken and hormone-treated beef.

Source: https://www.theguardian.com/us-news/2025/apr/03/uk-respond-us-tariffs-calm-heads-starmer-business-chiefs