Prime Minister Sir Keir Starmer has played down the prospect of retaliatory tariffs against the United States, after President Donald Trump threatened to impose fresh levies on Nato allies over the disputed territory of Greenland. Speaking at an emergency press conference on Monday, Starmer described tariff threats as 'completely wrong' and urged a 'calm discussion' to resolve the standoff.
Starmer said US tariffs would damage the British economy and were 'in no one’s interests', despite growing domestic pressure for a stronger response. He stated, 'A tariff war isn’t in anybody’s interests,' adding that his focus was on avoiding a trade war that would 'hit businesses, workers and families across the country'. Downing Street sources indicated that the prime minister has not yet ruled out tariffs entirely, and would assess the situation as it develops.
The government is preparing contingency plans, including a possible taxpayer-funded support package to shield British businesses if the US carries out its threat to impose a 10% levy on goods exports from 1 February, rising to 25% by June. Business Secretary Peter Kyle confirmed he had spoken to Jaguar Land Rover about the tariff threats, saying, 'I am always open to conversation about how we can support them.'
Trump has shown no sign of backing down, insisting he would '100%' push ahead with his tariff plans. In a telephone interview, he declined to rule out seizing Greenland by force, and in a text message to the Norwegian prime minister, he partly attributed his threat to being snubbed for the Nobel peace prize. Despite this, Starmer said he did not believe Trump was genuinely considering military action, adding that the row 'can be resolved, and should be resolved, through calm discussion.'
The prime minister faced criticism from opposition parties. Liberal Democrat leader Ed Davey accused Trump of acting like an 'international gangster', while senior Conservative MP Simon Hoare urged the government to 'fight fire with fire'. A YouGov poll found that two-thirds of Britons would support placing tariffs on American goods if Trump delivers on his threat. Starmer defended his diplomatic approach, saying, 'Alliances endure because they’re built on respect and partnership, not pressure.'
Starmer stressed the vital importance of US cooperation in areas such as intelligence, the nuclear deterrent, and Ukraine. He said, 'The last thing that we should do is to simply throw all that away and pretend that it doesn’t matter any more.' Foreign Secretary Yvette Cooper told MPs that the tariff threat was 'completely wrong, unwarranted, and counter-productive', adding that the government was 'working with the US administration, not buttering up.'
