Starmer calls for calm as global markets tumble following Trump’s tariffs
Sir Keir Starmer said the UK had to meet ‘the great challenge of the age’ after US President Donald Trump slapped tariffs on goods sent to the US.
Sir Keir Starmer called for “cool heads” as global markets plunged in response to Donald Trump’s sweeping tariffs.
The Prime Minister said the UK had to “rise together as a nation” in the face of a new era of global instability.
The value of US stocks dropped sharply as markets opened on Monday afternoon, following falls in London and across Europe and Asia earlier.
The FTSE 100 index of major companies fell sharply by 4.38% to 7,702.08, its lowest closing price since March last year.
In the US, the Dow Jones index was down 1.52%, while the S&P 500 was 0.96% lower.
In currency, sterling suffered a heavy fall, slipping by 1.28% to 1.272 against the dollar at the London market close.
Speaking at a Jaguar Land Rover plant in the West Midlands, Sir Keir said: “These are challenging times, but we have chosen to come here because we are going to back you to the hilt.”
He said the visit was a “statement of intent”, showing the Government’s support for an industry which has been hit with a 25% tariff by Mr Trump.
The Prime Minister said: “This is a moment for cool heads, nobody wins from a trade war, you know that.
“But it’s also a moment for urgency, because we’ve got to rise together as a nation to the great challenge of our age – and it is the great challenge – which is to renew Britain so we’re secure in this era of global instability.”
Sir Keir said “this is not a passing phase” and was a “completely new world”, with the economic turbulence following the defence and security instability caused by the war in Ukraine.
He added: “Let me be really clear, at a moment like this, our future is in our hands, and so of course, we will keep calm and fight for the best deal with the US, and we’ve been discussing that intensely over the last few days.
“But we are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe.”
The Prime Minister hopes to be able to strike an economic deal with the White House to ease the tariffs imposed by Mr Trump.
As markets fell, Mr Trump showed no sign of changing course, urging people to “be strong, courageous and patient”, promising that “greatness will be the result”.
He threatened to deepen the trade war between the world’s biggest economies by imposing “additional tariffs on China of 50%” in response to Beijing’s retaliatory 34% rate.
The president has imposed a 10% tariff on US imports of British goods, along with the 25% tariff on cars and separate import taxes for steel and aluminium.
The Prime Minister announced extra flexibility in the zero emission vehicle (Zev) mandate as the automotive industry phases out petrol and diesel cars an vans.
Sales of hybrid cars which cannot be plugged in to charge will be allowed to continue until 2035, although the Government confirmed the sale of purely petrol or diesel-powered cars will be banned from 2030.
Asked whether other green initiatives could be eased to protect businesses, Sir Keir said “there’s a global race on for the jobs of the future in relation to net zero” and “I don’t think now is the time to step away from that race”.
But he said: “We’re not ideological, we’re pragmatic. If there’s flexibilities that help, which is what we’ve done today in important times for JLR, of course we will take those steps.”
Reform UK leader Nigel Farage, who has long supported Mr Trump, said he thought the tariffs were “a bit excessive”.
“He promised he’d do it in the run-up to the American election,” Mr Farage told the PA news agency.
“So you can’t say he’s breaking his promises, but I think the impact of it – my own view is the impact of it has been bigger than he could have predicted.”
He said he speaks to Mr Trump “far less” now than he did during his first term as US president.
Conservative Party leader Kemi Badenoch meanwhile said Sir Keir is “not doing very much yet” in response to US tariffs.
She added: “What we want to see is a trade deal that helps lower the tariffs.
“He has made an announcement today about reducing the targets for the zero electric vehicles mandate. That’s something he should have done a long time ago.”
