Keir Starmer faces mounting pressure to adopt a robust stance against Donald Trump as the US president threatens to impose sweeping tariffs on UK exports. Senior UK and EU diplomats have urged the prime minister to be prepared to retaliate, warning that failure to do so could embolden Trump to use tariffs repeatedly.
The UK government is engaged in last-ditch talks to avert US tariffs on key industries, including cars, steel and aluminium, which Trump has already targeted with 25% levies. A further threat looms with a proposed blanket 25% tariff on countries that impose VAT on US exports, a category that includes the UK and EU nations.
The Office for Budget Responsibility has warned that a 20% increase in tariffs between the US and the rest of the world would cut UK growth by 1% and eliminate the £9.9bn of fiscal headroom restored by Chancellor Rachel Reeves in her recent spring statement. Reeves, who is said to oppose retaliatory tariffs, acknowledged heightened global economic uncertainty but did not directly blame Trump.
Lord Kim Darroch, former UK ambassador to Washington, advised Starmer to learn from Canadian Prime Minister Mark Carney, whose defiant response to Trump’s threats has boosted his Liberal Party’s poll ratings. “They should note the dramatic turnaround in Canadian politics,” Darroch said, adding that Trump’s tariffs are a “forcing mechanism” he will use repeatedly if they yield results.
João Vale de Almeida, former EU ambassador to the US, urged Starmer to at least condemn the tariffs as harmful to all parties. The Liberal Democrats have also warned against “appeasing” Trump by reducing taxes on US tech firms while implementing domestic welfare cuts. Starmer’s team has indicated he may act “in the national interest” but could also adopt a pragmatic approach, potentially delaying retaliation to pursue a broader trade deal.
