Sir Keir Starmer has said the UK’s “national interest” must come first amid Donald Trump’s trade wars.
The prime minister told Sky News the UK had a right to respond to tariffs imposed and threatened by the US president.
It came as business minister Sarah Jones held a virtual meeting with representatives of the car industry on Friday to discuss Mr Trump’s decision to introduce a 25% tariff on all car imports from 2 April.
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Speaking to Sky News’ political correspondent Ali Fortescue, Sir Keir said: “Obviously any tariffs are concerning and we’re working hard with the industries, the sectors, likely to be impacted.
“None of them want to see a trade war, which is why we’re engaged in discussions with the United States about mitigating the impacts of the tariffs.
“In the end, our national interest has to come first, which means all options are on the table.”
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Mr Trump’s decision to impose a tariff on cars comes after introduced a levy of the same value on all aluminium and steel imports to the US, affecting UK products worth hundreds of millions of pounds.
The government has sought to maintain a positive relationship with the US president to avoid further tariffs.
Mr Trump says the measures are necessary to grow the US economy by boosting domestic manufacturing and protecting jobs.
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The UK car industry has reacted with concern at the prospect of 25% tariffs.
According to the Society of Motor Manufacturers and Traders, the US is Britain’s second largest car export market after the EU, with UK passenger car exports to the US worth £7.6bn last year.
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Ms Jones said: “We’re disappointed by the US decision to impose global tariffs on the auto industry and know this will be extremely concerning for businesses and consumers.
“But the US is an indispensable ally and one of our closest trading partners, with £1.2trn invested in each other’s economies.
“Our approach to the US is pragmatic, we keep all options on the table, and we continue to have productive discussions on securing a wider economic deal.”
