Sat, 05 Apr 2025

Sat, 05 Apr 2025 Starmer's response to Trump tariffs is both to slow down and go faster

What's happening in Whitehall to try to limit the harm to the UK, perhaps by making a deal with the US, and make the most of any opportunities?

* Prime Minister Sir Keir Starmer watched from his flat as President Donald Trump announced tariffs on all nations, including the UK.
* Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds also learned of the news.
* Ministers are watching with growing horror as the US and China engage in a trade war that is affecting global stock markets.
* The PM spent another weekend working from Chequers, but no calls have been received yet from US negotiators.
* A deal between the UK and US was discussed earlier this year, but negotiations stalled ahead of Trump's announcement.
* The government has said it is not waiting for a deal and will instead focus on its own plans to boost the economy.
* There are reports that the Treasury Minister will discuss the talks with BBC journalists tomorrow.
* Any potential agreement would be basic, rather than detailed, according to government sources.
* Uncertainty around the talks means No 10 is not relying on a deal to boost the economy.
* The government has asked businesses if they want them to respond to Trump's tariffs, but has received little appetite for retaliation.
* Ministers have been trying to get businesses on board with their plans and to trust the process.
* The government is also looking at bringing forward spending announced in the Spending Review and speeding up its Industrial Strategy.
* The PM is using the global uncertainty as an opportunity to push the government machine harder.
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