Sir Keir Starmer is “very happy” about Britain’s therapy by the US on tariffs, Donald Trump has insisted, regardless of slapping the UK with a ten per cent “reciprocal” levy on Wednesday.
“We have a very good dialogue. I think he was very happy about how we treated them with tariffs”, the president claimed whereas talking to reporters on board Air Force 1.
Mr Trump additionally mentioned: “I think it’s going very well,” including that the “markets are going to boom”.
It comes after world markets tumbled and British ministers started getting ready for retaliatory motion because of the sweeping world tariffs unveiled by the US president on Wednesday. Meanwhile, the chancellor’s fiscal headroom dangers being worn out because of the levy.
The FTSE 100 fell to a three-month low on Thursday after the information that UK exports to the US would face a blanket 10 per cent tariff, whereas enterprise secretary Jonathan Reynolds on Thursday mentioned ministers will have a look at taking doable retaliatory motion.
Although the prime minister has appealed for calm, UK officers at the moment are working by 417 pages of merchandise they might goal in an inventory that features every little thing from bourbon whiskey to motorbikes.
Treasury minister James Murray mentioned the UK was “disappointed” that Donald Trump determined to impose tariffs, when requested if the US president was proper to say Britain was “very happy” with its therapy.
He mentioned the UK was in a “better position” than different international locations as a result of it’s on the bottom band of tariffs however would hold all choices on the desk.
“The prime minister set out his reaction yesterday when he met businesses,” Mr Murray instructed Times Radio when requested whether or not Mr Trump was proper. “We’re disappointed at tariffs being imposed globally.”
Despite the UK being assigned the bottom tariff fee by Mr Trump, economists careworn that Britain nonetheless confronted a “significant impact”, whereas the prime minister acknowledged there “will be an economic impact”.
Experts predicted that UK financial progress – already anticipated to quantity to simply 1 per cent this 12 months – may very well be as much as 0.5 proportion factors decrease than anticipated over coming years because of the tariffs.
Last week, the Office for Budget Responsibility warned that Ms Reeves’s headroom in opposition to her debt goal could be at critical danger if tariffs have been imposed. If this proves to be appropriate, the chancellor will face the prospect of imposing extra spending cuts or tax rises if she doesn’t change her fiscal guidelines.
Speaking on the launch of his native authorities marketing campaign in Chesterfield, Sir Keir mentioned the world is in the beginning of a “new economic era”.
“We have to act and lead differently”, the prime minister mentioned, describing the response to President Trump’s tariffs as “not just a short-term tactical exercise”.
Asked by The Independent whether or not he may rule out additional profit cuts to fill any gap within the public funds left by Mr Trump’s commerce struggle, the prime minister mentioned the Budget was a great distance away.
He mentioned: “There’s a lot of water that will have to go under the bridge before then. Obviously, my job, our job, the government’s job, is to take the steps necessary in our national interest, which is why we’re focusing on progressing the deal that we’ve been discussing with the US, making sure that we are in a position to take other measures, should they be necessary, but at the same time continuing and turbocharging the work we’re doing on growth and reform and changing our economy.
“I’m not going to get into what may or may not happen in six months’ time.”
https://www.independent.co.uk/news/uk/politics/donald-trump-tariffs-starmer-b2727270.html