Trump is expected to slap import taxes on goods going to the US from around the world, as ITV News Political Correspondent Harry Horton and Business and Economics Editor Joel Hills reports Sir Keir Starmer says the government has “prepared for all eventualities”, and “will rule nothing out” in terms of a response to US President Donald Trump ‘s tariffs.Trump is expected to slap import taxes on goods going to the US from around the world in a White House statement at 9pm.British businesses are braced for the impact of the president’s “liberation day” tariffs, which have the potential to derail the UK government’s hopes for economic growth.At Prime Minister’s Questions, Sir Keir told MPs: “Let me be clear with the House, a trade war is in nobody’s interests and the country deserves – and we will take – a calm, pragmatic approach.“That’s why constructive talks are progressing to agree a wider economic prosperity deal with the US.“That’s why we’re working with all industries and sectors likely to be impacted.“Our decisions will always be guided by our national interest, and that’s why we have prepared for all eventualities, and we will rule nothing out.”Conservative leader Kemi Badenoch hit out at Starmer during PMQs over his inability to secure exemptions to the tariffs.”His decisions have made our economy fragile just as we face global trade wars…no wonder he can’t get a tariff deal for British cars”, she said.Badenoch said the PM should have used a draft trade deal with the US left by the Conservatives, but Starmer jibed “she was the trade secretary who failed to get a trade deal with the US”.Liberal Democrat leader Ed Davey called on Starmer to form an “economic coalition of the willing” with Europe and other countries against Trump’s tariffs.Davey praised the PM’s military “coalition of the willing” between countries wanting to support Ukraine, and said doing something similar on tariffs would “avoid a global trade war and a global recession”.”Every week he tries to tempt me to make what I think is a false choice between our relationship with the US and our relationship with other countries particularly Europe – I think that’s the wrong choice,” Starmer said.Have you heard our podcast Talking Politics? Tom, Robert and Anushka dig into the biggest issues dominating the political agenda in every episode… The car industry has already learned its fate, with a 25% tariff on vehicles sent to the US – something which could cost an estimated 25,000 jobs in the UK .Intensive diplomatic efforts and negotiations on a UK-US economic deal are not expected to be enough to spare British exporters from Trump’s tariff plans.The imposition of tariffs will make British goods more expensive in the US, which is likely to reduce demand.Economists at the Office for Budget Responsibility (OBR) have warned that US tariffs could eliminate Chancellor Rachel Reeves’s “headroom” against her day-to-day spending plans, requiring her to make more cuts or hike taxes to meet the rules she has set herself.The tariffs could knock up to 1% off the size of the UK economy if there is a full-blown trade war with the UK retaliating to Trump’s measures.Although a deal will not be reached before Trump’s announcement, UK negotiators are pursuing an agreement with the US focused on technology.Such a deal could include possible changes to the digital services tax – which imposes a 2% levy on the revenues of several major US tech companies – in exchange for a carve-out from the tariffs.Starmer did not deny that changes to the digital services tax are being considered.Easing access for US agricultural products to UK markets could also be on the table, although officials have insisted that food standards will not be lowered.Sentiment in the European financial markets, including London’s FTSE 100, was weak on Wednesday as investors awaited Trump’s announcements.It is not yet clear what Trump will announce on Wednesday, but his administration views the application of VAT as discriminating against US goods and could respond with a 20% tariff on imports from the UK.White House press secretary Karoline Leavitt said the new tariffs would take effect immediately, telling reporters: “April 2, 2025 will go down as one of the most important days in modern American history.”Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know….
Donald Trump to unleash 'liberation day' tariffs amid fears of global trade war | ITV News
In a move that Trump has promised will ‘make America wealthy again’, the US president has laid out new tariffs on exports to the United States, as ITV News US correspondent Dan Rivers explains US President Donald Trump has finally announced his so-called “liberation day” tariffs, which could spark a […]
