Trump says he will not pause tariffs as Starmer calls for ‘cool heads’
The Prime Minister said the UK had to ‘rise together as a nation’ in the face of a new era of global instability.
US President Donald Trump has said he is not looking to pause the tariffs which have plunged global markets into turmoil, after Sir Keir Starmer called for “cool heads” in response.
The trade taxes Mr Trump imposed on goods from most countries resulted in the value of US stocks dropping sharply when markets opened on Monday, following falls in London and across Europe and Asia earlier.
Asked by reporters in the White House if he was open to pausing tariffs to allow for negotiations, the US leader said: “We’re not looking at that.”
He also suggested that the levies could be both a negotiating tool to extract concessions out of other countries, as well as a means to raise cash for US coffers.
“They can both be true, they can be permanent tariffs, and they can also be negotiations, because there are things that we need beyond tariffs,” Mr Trump said in the Oval Office.
The Prime Minister earlier said the UK had to “rise together as a nation” in the face of a new era of global instability, as the tariffs began to take effect on the markets.
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 (JLR) 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.
Business Secretary Jonathan Reynolds meanwhile insisted the UK should not “escalate a trade war as some colleagues, other political parties, have asked me to do”.
“That would be the wrong thing,” he said, speaking to Sky News.
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, the US president 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 mandate as the automotive industry phases out petrol and diesel cars and 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.
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”.
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.”
