Sir Keir Starmer defended his “pragmatic” decision not to hit back at Donald Trump’s tariffs as the US and European Union appeared to be on the brink of a full-blown trade war.
The Prime Minister has not retaliated to the US president’s global 25% tariff on steel and aluminium, despite the impact it will have on British exporters.
The European Union has hit back, with tariffs on goods including bourbon – prompting Mr Trump to threaten a massive 200% tax on imports of champagne and other wines from the bloc.
Sir Keir said the option of a response to the US remained on the table, but he has pinned his hopes on a wider deal with Mr Trump’s administration to exempt the UK from the president’s tariffs.
“Obviously I’m disappointed to see tariffs, global tariffs, in relation to steel and aluminium,” he said.
“But I’m going to take a pragmatic response to this, because we are negotiating and talking about an economic deal and agreement as we speak.”
He said that “of course, in the end, all options are on the table, but my response is to keep my feet on the ground, to be pragmatic, to keep ensuring that we keep our eyes on the prize”.
“The prize is not a tariff war, which I don’t think is going to be in our interests.
“The prize is an economic agreement or deal, if we can reach that, that actually covers tariffs and much more besides.”
Sir Keir’s decision not to hit back at Mr Trump has spared the UK the kind of backlash the US president is threatening against Brussels.
In a post on his Truth Social platform, Mr Trump said the EU was “one of the most hostile and abusive taxing and tariffing authorities in the world” and had put a “nasty” 50% tariff on US whiskey.
Mr Trump said: “If this Tariff is not removed immediately, the US will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES.”
Business Secretary Jonathan Reynolds will travel to the US next week for trade talks.
He told MPs: “I do think we can look to the opportunity the UK has, which is greater than any other country, to get to an agreement that improves our terms for trade with the US.”
He said the UK had made a “strong case” to be exempted from the steel and aluminium tariffs, but “the US position is no exemptions for anybody”.