The Prime Minister said he was ready to use industrial policy to “shelter British storm affairs” expected from the US President Donald Trump’s rates.
Writing in the Sunday TelegraphSir Keir Starmer said he would continue to seek a trade agreement with the United States to avoid certain prices, but state intervention spoke of the national interest.
“Some people may feel uncomfortable on this subject-the idea that the state should intervene directly to shape the market has often been in derision,” he said. “But we just can’t hang on to old feelings when the world is running so quickly.”
The United Kingdom was among the nations struck with a basic “10%” import right this week.
In addition to the 10% prices, a 25% price was put on the exports of British cars, as well as steel and aluminum products. Many nations will face many higher prices Up to 50%, from April 9.
Trump said his intervention was to encourage American consumers to buy more American goods and stimulate the internal economy.
But the announcement – and the prices for reprisal from countries like China – led to shares plunging more than 5% In the midst of fears of a global recession.
Jaguar Land Rover Announced on Saturday that he “pauses” all expeditions to the United States Because it works to “solve new trading terms”.
Sir Keir wrote: “This week, we will kill plans that will improve our national competitiveness, so we are less exposed to this type of world shock.
“We are ready to use industrial policy to help shelter British storm affairs.”
The Prime Minister admitted that some could feel “uncomfortable” with the government involved in the economy, but said that the United Kingdom could not “hang on old feelings when the world turns so quickly”.
He has not excluded new tax increases in the fall, but stressed that the government had resisted doing so in its spring declaration.
An industrial strategy promised in the Labor Elections Manifesto should be unveiled this summer. Elements of this could now be adapted and advanced to help British companies.
In the telegraph, Sir Keir reiterated the position of the government according to which it “would remain calm and fight for the best offer” with the United States, but said that “all the options remain on the table”.
He added: “I only concluded an agreement if that suited British affairs and workers’ safety.”
Conservative chief Kemi Badenoch urged the Prime Minister to conclude a “deep and significant trade agreement” with the United States, which “provides growth without compromising standards”.
The United Kingdom has exported nearly 60 billion pounds to the United States last year, mainly machines, cars and pharmaceuticals.
On Wednesday, the government published a list of 400 pages of American products which it could include in any possible price response. Affairs Secretary Jonathan Reynolds told deputies that the government would consult companies on how reprisal prices could affect them.
The list covers 27% of imports from the United States – chosen because it would have a “more limited impact” on the British economy, said the business and trade department.
Sir Keir said he would also seek to reduce trade barriers with other savings to limit the impact of American prices on British exports.
During the weekend, the Prime Minister spoke to several world leaders to discuss how to respond to American prices.
During a telephone call with French President Emmanuel Macron on Saturday, the couple agreed that a trade war was “in the interests of anyone” but “nothing should be outside the table”.
But the conservatives and the liberal democrats say that the British families and companies will first feel the impact of the National insurance hike for employers It takes effect today.