The UK has “prepared for all eventualities” when it comes to looming US tariffs, with no response ruled out, Keir Starmer has told MPs before Donald Trump’s so-called liberation day, which could spark a global trade war.
Challenged by Kemi Badenoch, the Conservative leader, at prime minister’s questions on Wednesday, Starmer said while all options were being considered, he would avoid any kneejerk reactions.
Starmer told the Commons in his opening remarks: “Let me be clear with the house, a trade war is in nobody’s interest, and the country deserves, and we will take, a calm, pragmatic approach.
“That is why constructive talks are progressing to agree a wider economic prosperity deal with the US. That is why we are working with all industries and sectors likely to be impacted. Our decision will always be guided by our national interests, and that’s why we have prepared for all eventualities, and we will rule nothing out.”
Badenoch accused him of a “failure to negotiate” for not yet securing a wider US trade agreement that could circumvent some or all tariffs, but Starmer rejected this.
He said: “It is important at moments like this that we don’t have kneejerk reactions, that we are actually cool-headed about this.”
Starmer also rejected a call from the Liberal Democrat leader, Ed Davey, to mimic Ukraine negotiations and assemble “an economic coalition of the willing” who would reciprocate en masse any US tariffs. This was, the prime minister said, an attempt by Davey to “tempt me to make what I think is a false choice between our relationship with the US and our relationship with other countries, particularly Europe”.
Speaking earlier on Wednesday, Bridget Phillipson, the education secretary, said the government had been “working through every eventuality” for the tariffs and any potential damage to the UK economy.
“We do recognise this is likely to be a very challenging period,” she told BBC Breakfast. “We still have negotiations under way with our US counterparts about securing an economic deal, but we will always act in the national interest and the interest of the British people.”
Phillipson added: “I think what [people in Britain] want, and what business and industry wants, is for us to maintain a calm and quite pragmatic approach during this time and not engage in a kneejerk response, because the last thing that anybody would want is a trade war with the US.”
Since taking office, Trump has rattled global stock markets and caused consternation among business leaders by announcing and then delaying plans to impose tariffs on foreign imports. The threats have soured relations between the US and its largest trading partners. Canada’s prime minister, Mark Carney, has called them “unjustified” and said his country would react robustly. The EU has said it has a “strong plan” to retaliate.
