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Sir Keir Starmer has made it clear that any trade agreement with the United States will only be finalized if it serves the UK’s “national interest.” His comments come in the wake of recent tariffs imposed by President Trump, which have raised concerns about their effects on global economies.
The UK government is facing significant challenges due to these tariffs, which have included a baseline 10% import duty and a steep 25% tariff on British automobiles. As officials work to negotiate terms that might alleviate some of this economic pressure, there is also a consideration to amend tax policies regarding major technology corporations as part of the potential deal.
During a visit to the Jaguar Land Rover factory in Solihull, Starmer sought to provide reassurance about the government’s trade intentions. “I will only strike a deal if it’s in the national interest,” he emphasized, signaling a commitment to safeguard British interests while exploring international partnerships.
Starmer’s remarks came as the US stock markets experienced a downturn of 4.4% to 5% due to fears of an impending global recession. In response to these economic challenges, the UK government has recently announced plans to ease regulations concerning electric and hybrid vehicles, alongside a £2.3 billion investment aimed at promoting the adoption of electric cars and enhancing charging infrastructure as steps towards a sustainable industrial future.
Highlighting the significance of his visit to the automotive factory, Starmer described it as a demonstration of the government’s commitment to the sector. “These are challenging times, but we have chosen to come here because we are going to back you to the hilt,” he stated, acknowledging the uncertainties faced by workers. He reassured the workforce that the government would “have your back” amid rising concerns and promised forthcoming announcements to bolster industrial policy aimed at protecting British businesses.
As part of his visit, he also unveiled a joint investment of £600 million with the Wellcome Trust to enhance access to healthcare data, facilitating improved medical research.
‘Strength not timidity’
The government is actively working to challenge the tariffs imposed by the US as part of a broader economic agreement with the Trump administration. Nevertheless, officials have been preparing a contingency plan, involving a detailed 400-page list of US products that could potentially face British import duties, ranging from crude oil to firearms and bourbon whiskey.
The National Farmers’ Union (NFU) has expressed concern over the government’s approach, urging that the UK’s food standards not be compromised in pursuit of a trade deal with the US. NFU president Tom Bradshaw highlighted the precarious situation of the farming sector, stating, “With the UK farming sector already under huge strain, with confidence at an all-time low and investment dropping day by day, it cannot deal with another trade deal which sells out domestic food and farming.”
Negotiations are ongoing regarding technology agreements, with reports indicating that the Trump administration is advocating for a reduction of the UK’s digital services tax, which was enacted in 2020 and impacts major global tech companies such as Amazon and Meta.
Liberal Democrat leader Ed Davey has called on the Prime Minister to demonstrate that the UK has alternative strategies in handling the trade tensions and urged for a resolution characterized by assertiveness rather than passivity. In the political discourse, Conservative shadow business secretary Andrew Griffith criticized Labour’s industrial strategy, claiming it is “still stuck on the grid,” while alleging that the current government is compromising competitiveness through increased taxation and regulation.
Source
www.bbc.com