Prime Minister Keir Starmer has ruled out immediate retaliatory tariffs against the United States, despite Donald Trump's threats to impose levies on NATO allies over Greenland. Speaking at an emergency press conference on Monday, Starmer described the US president's approach as 'completely wrong' and warned that a tariff war would damage the British economy, hitting businesses, workers and families.
Starmer insisted his priority was to avoid a trade war through 'calm discussion', adding: 'A tariff war isn’t in anybody’s interests.' However, Downing Street sources indicated that tariffs had not been ruled out entirely, and the government is preparing a taxpayer-funded support package to shield British businesses if the US follows through with its threats next month.
The row escalated after Trump announced plans to impose a 10% levy on goods from the UK and seven other European countries from 1 February, rising to 25% by June. In an NBC interview, Trump refused to rule out seizing Greenland by force and linked his tariff threats to being snubbed for the Nobel peace prize.
Starmer said he did not believe Trump was genuinely considering military action in Greenland, and expressed confidence that the dispute could be resolved through dialogue. He stressed the importance of US cooperation on intelligence, nuclear deterrents and Ukraine, urging allies to maintain a 'pragmatic, sensible and sustained' approach.
Political pressure is mounting at home, with the Liberal Democrats branding Trump an 'international gangster' and senior Conservative MP Simon Hoare urging the government to 'fight fire with fire'. A YouGov poll found that two-thirds of Britons support placing tariffs on American goods if Trump delivers on his threat.
Unite the union called for immediate retaliatory tariffs, while the government explores alternatives such as increasing purchases of US liquefied natural gas and adjusting the digital services tax. Starmer is due to fly to Brussels on Wednesday for talks with EU leaders amid the worsening diplomatic crisis.
