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Tariffs put economy 'in new era' says Starmer

By Julian Shea in London | chinadaily.com.cn | Updated: 2025-04-03 22:00
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United Kingdom Prime Minister Keir Starmer said the world is "entering a new era" in global trade, "just as with defense and security", following the announcement of the United States' new tariffs on imports.

Compared to other countries, the UK escaped relatively lightly from Wednesday's announcement, with its goods being subjected to 10 percent tariffs, as opposed to 20 percent for items imported from the European Union, 24 percent for Japan, and with tariffs on goods from China now reaching 54 percent, but he said there will still be a major economic impact.

US President Donald Trump, Starmer told a meeting of business leaders at his Downing Street office on Thursday, had "acted for his country, and that is his mandate. Today, I will act in Britain's interests with mine".

"Decisions we take in coming days and weeks will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table, in the interests of putting money in the pockets of working people," he continued. "Nothing else will guide me, that is my focus."

Last year, the UK sent exports worth almost 60 billion pounds ($79 billion) to the US and Starmer had held out hope that the country might be given a trade deal that Trump has talked about several times in the past but that has never come to pass.

He said he was still hopeful that a deal might be agreed, but in the meantime "nothing was off the table" when it came to how the UK might respond.

"Clearly, there will be an economic impact from the decisions the US has taken, both here and globally," he said. "I want to be crystal clear – we are prepared … indeed, one of the great strengths of this nation is our ability to keep a cool head."

When asked by the BBC if a trade deal had been agreed but was still awaiting presidential approval, Business Secretary Jonathan Reynolds said: "That is not an inaccurate reflection."

A Downing Street insider added: "We don't want any tariffs at all, but a lower levy than others vindicates our approach."

In another interview, Reynolds told Sky News the UK "will take any action we need" to in response to Washington's warning to other countries not to retaliate.

"Whilst we have a chance of making the relationship between the UK and US even stronger than it is, the message I get very strongly from businesses is 'remain at the table, don't overreact, stick with the calm-headed approach the government has had to date', and we're going to do that," he added.

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