Mon, 07 Apr 2025

Mon, 07 Apr 2025 Chris Mason: What can Starmer do in a world buffeted by Trump?

The government is leaning into this moment of turbulence but can it make a difference.
Two-thirds of people in the UK are worried about the impact of America's tariffs on the cost of living, according to new polling. Nearly twice as many people support the government retaliating with its own tariffs on America as those who oppose the idea. The government is maintaining its reluctance to impose tariffs but keeps the option open. The prime minister has said that the world has "fundamentally changed", raising questions about whether he and his government are willing to change their policies, including their promise not to raise income tax, VAT, or National Insurance. However, Sir Keir Starmer repeated this promise, while avoiding a direct answer on whether his party would loosen its self-imposed restrictions on government borrowing if the economy takes a hit. Ministers are scrambling to respond to the crisis and speeding up announcements originally planned for their Industrial Strategy. There is talk of a renewed urgency to get trade deals, with a possible free trade deal with India now considered more important than ever. The government is leaning into this moment of turbulence but faces uncertainty over how much difference it can make in the face of Donald Trump's tariffs. The US president has warned of an extra tax unless China withdraws its own 34% counter-tariff on US goods, and is pressing ahead with global tariffs despite some allies questioning whether he is going too far.
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