Prime Minister Sir Keir Starmer has downplayed the prospect of imposing retaliatory tariffs on the United States, following President Donald Trump's threat to levy fresh duties on Nato allies over Greenland. Speaking at an emergency press conference on Monday, Starmer said US tariffs would damage the British economy and were 'in no one's interests', urging a 'calm discussion' to resolve the row.
Starmer stressed that a tariff war would harm businesses, workers, and families across the UK, and his focus was on avoiding such a scenario. 'Threatening tariffs on allies is the wrong thing to do, completely wrong,' he told reporters. However, Downing Street sources indicated that the prime minister has not entirely ruled out tariffs, and the government is preparing a taxpayer-funded support package to shield British businesses if the US pushes ahead with its threats next month.
The business secretary, Peter Kyle, confirmed he had already spoken to Jaguar Land Rover about the tariff threats, saying he was 'always open to conversation about how we can support them'. Trump has threatened a 10% levy on goods exports from 1 February, rising to 25% by June, in a bid to force a deal over Greenland. In an interview on Monday, the US president insisted he would '100%' push ahead with his plans.
Despite Trump's belligerent rhetoric, Starmer said he did not believe the US president was genuinely considering military action in Greenland. 'I think that this can be resolved, and should be resolved, through calm discussion,' he added. The prime minister also highlighted the vital importance of US cooperation on intelligence, the nuclear deterrent, and Ukraine, warning against 'throwing all that away'.
The Liberal Democrat leader, Ed Davey, urged the government to change course, accusing Trump of acting like an 'international gangster', while senior Conservative MP Simon Hoare called for the government to 'fight fire with fire'. A YouGov poll on Monday found that two-thirds of Britons would support placing tariffs on American goods if Trump delivers on his threat. Foreign Secretary Yvette Cooper told MPs the tariff threat was 'unwarranted and counter-productive'.
