**London**: Labour leader Keir Starmer faces mounting calls to adopt a tougher stance against US President Donald Trump’s impending tariffs, which could severely impact the UK economy. Amid intense diplomatic discussions, critics urge Starmer to act decisively to protect British industries from potential harm.
Keir Starmer, the leader of the Labour Party, is facing increasing pressure from prominent figures within the UK and the European Union to adopt a firmer stance against US President Donald Trump. This comes in the wake of concerns that the president is poised to impose extensive tariffs on British exports, a move that could potentially trigger a global trade conflict and significantly impact the UK economy.
As the situation unfolds, British officials in both London and Washington are reportedly engaged in intense discussions aimed at persuading the White House to moderate its stance ahead of what Trump has dubbed “liberation day,” scheduled for this Wednesday. The US government has already introduced a 25 per cent tariff on imported vehicles, as well as on steel and aluminium products. Furthermore, there are threats of additional retaliatory tariffs directed at countries, including the UK, that enforce VAT on American exports.
The Office for Budget Responsibility recently issued a warning indicating that a 20 per cent increase in tariffs between the US and other trading nations could lead to a 1 per cent reduction in UK GDP, jeopardising the £9.9 billion fiscal headroom that Chancellor Rachel Reeves had restored in her spring statement.
Thus far, Starmer has adopted a cautious approach, reportedly opting to assess the full range of US measures before deciding on an appropriate response. However, there are growing calls from various quarters for Starmer to take a more proactive stance. Government sources suggest that the Labour leader is ready to “act in the national interest” should the UK experience significant adverse effects, but he has also indicated that he may hold off on immediate retaliation to maintain prospects for a future trade agreement with the United States.
Critics of this strategy argue that such hesitance may convey a sense of weakness. Lord Kim Darroch, a former UK ambassador to Washington, cautioned that a lack of decisive pushback could embolden Trump to utilise tariffs as a recurring political tool. Darroch recommended that Starmer emulate Canadian Prime Minister Mark Carney, who took a firm position against US tariffs and subsequently experienced a rise in his approval ratings. “Tariffs are [Trump’s] all-purpose forcing mechanism,” Darroch stated. “If he sees them working, he’ll use them again and again. The UK must be cautious about giving him easy wins.”
Carney’s firm response included an affirmation that Canada would retaliate with its own tariffs if necessary. This assertive stance seems to have influenced the tone of subsequent discussions, with both leaders describing a recent Friday phone call as “very constructive.”
In addition, João Vale de Almeida, a former EU ambassador to both the UK and the US, suggested that Starmer should at the very least “condemn the tariffs” and criticise their utilisation as a coercive diplomatic strategy. “They are bad for everyone,” he remarked.
Despite the overarching trade agenda that Trump has adopted, some analysts speculate that the UK may not face the most severe of the proposed tariff measures, given that the former president reportedly views the EU as a more antagonistic trading partner. Nonetheless, key UK sectors such as automotive manufacturing and steel production remain at risk.
Public sentiment appears to be largely pessimistic, as evidenced by a recent Business Matters Trends Research poll which found that only 11 per cent of UK voters anticipate an improvement in the economy over the next year. Conversely, 61 per cent believe the economic situation will deteriorate, and only 15 per cent think the UK economy is performing better than that of the US, with just 9 per cent considering it superior to China’s.
Starmer’s delicate balancing act—navigating the need to defend UK industries while maintaining trade relations with an unpredictable US president—could play a critical role in shaping his first year as leader. With global markets closely scrutinising developments and British exporters feeling apprehensive, the scope for diplomatic negotiations appears to be rapidly narrowing.
Source: Noah Wire Services
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