Sir Keir Starmer is set to announce more support for businesses after Donald Trump’s 10% tariffs kicked in on Saturday, a senior minister has told Sky News.
Darren Jones, chief secretary to the Treasury, told Sunday Morning With Trevor Phillips: “There’ll be further announcements from the prime minister this week on support for British business.”
Mr Jones said Sir Keir has been “clear that he’s unhappy about the tariffs” but it is essential the UK reacts in a “cool-headed and calm way”.
He added the prime minister was clear in an article he wrote for The Sunday Telegraph he thinks globalisation has failed in the current context, and the government needs to go “further and faster” in supporting British industry and the economy.
Sir Keir promised to “shelter British business from the storm” and wrote “these new times demand a new mentality”.
The government has said it is continuing to negotiate with the US after it failed to come to an agreement by Wednesday last week, when Mr Trump placed 10% tariffs on all UK exports to the US.
Many other countries fared worse, with the European Union having 20% tariffs imposed on goods, and China 34%.
Mr Jones said while many other countries were also given 10% tariffs, “other large, complex economies” like the UK were given much higher tariffs.
He said that was down to Sir Keir having a “good relationship” with Mr Trump and trade teams negotiating for months beforehand.
“It was a vindication of our engagement with the United States in the run up to the president’s announcements,” he said.
“But clearly we don’t like tariffs. We’re not happy about that.”
Mr Trump had suggested Sir Keir was “very happy” with the 10% tariffs, but Mr Jones said he thought the president was referring to the fact the UK had lower tariffs than others.
Tariffs are Brexit dividend
The minister said he believes the UK can broker a good deal with both the US and the EU.
He admitted it was a “Brexit dividend” that meant the UK got off better than the EU.
“It’s good, but what we’re not going to do is pick or trade off the United States or the European Union,” he said.
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No chlorinated chicken
The minister was also insistent the UK would not allow less strict US food standards as part of a deal.
“I have been really clear we will not have chlorinated chicken in the UK,” he said.
Sir Keir earlier this week said “nothing is off the table” in reference to potential retaliatory tariffs, however, Mr Jones appeared confident a deal could be made.
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Global markets fall
On Friday, China introduced 34% additional tariffs on all goods imported from the US after calling the 34% duty placed on its goods “bullying”.
The tariffs have caused global markets to plummet, with the UK’s FTSE 100 index of leading shares closing more than 7% lower on Friday than Monday – it’s worst day of trading since the start of the COVID pandemic.
Almost $5tn (£4tn) was wiped off the value of global stock markets since Mr Trump’s announcement on Wednesday, analysts calculated.
