As the UK navigates the global economic fallout from US President Donald Trump’s tariffs, Prime Minister Sir Keir Starmer is poised to unveil a series of industrial policy measures aimed at shielding British business from the storm.
The recent wave of tariffs imposed by US President Donald Trump has sent shockwaves across the global economy. As the UK navigates this new landscape, Prime Minister Sir Keir Starmer has hinted at using industrial policy to ‘shelter British business from the storm.’ But what does this mean in practice?
The UK’s largest export of goods to the US, cars and auto parts, have been hit hard by a 25% tariff that came into force on Thursday. This has sent ripples through the industry, which is already struggling to meet rising requirements for electric vehicle sales. While a general ban on petrol and diesel-powered cars may not be moved forward, there are indications of flexibility in the relaxation of these targets.
The Prime Minister’s speech in the West Midlands on Monday is expected to provide further clarity on this issue. It is also possible that smaller volume luxury car makers like Aston Martin and Rolls-Royce will receive extra time to comply with regulations. However, one concern is that goods destined for the US may be diverted to other markets, including the UK, due to the tariffs imposed.
The steel example introduced by the UK and EU as safeguards against a huge influx of foreign goods could serve as a blueprint for other industries. The Department for Business and Trade is in active discussions with the Trade Remedies Authority to implement similar measures, which aim to avoid a flood of low-priced imports that may undercut domestic suppliers.
In response to the tariff storm, the government has announced plans to bring forward a series of investment announcements into UK industry and infrastructure. This move is designed to reflect the urgency and sensitivity of the situation faced by UK industry. Meanwhile, officials will press ahead with deals to secure better mutual access to countries hit harder by the new tariffs.
The BBC understands that India, which was hit by a 26% tariff, is a particular target for government officials seeking to strike a deal. Trade deals are complex and time-consuming, but the sense of urgency following an ‘economic shock‘ has led to a sudden shortening of timeframes.
As the UK navigates this new landscape, it remains to be seen how Prime Minister Starmer‘s industrial policy measures will play out in practice. One thing is certain: the coming weeks and months will be crucial for UK industry as it seeks to weather the storm caused by Trump‘s tariffs.
Sir Keir Starmer is a British politician who has been the Leader of the Opposition and Leader of the Labour Party since 2020.
He was previously the Shadow Brexit Secretary from 2016 to 2019.
Born on September 2, 1962, in Southwark, London, Starmer studied law at the University of Leeds and later became a human rights lawyer.
He entered politics as an MP for Holborn and St Pancras in 2015.
