Donald Trump tariffs: Sir Keir Starmer does not rule out retaliation as UK ‘preparing for all eventualities’

The US president is expected to impose a wide set of tariffs on goods imported to the US from overseas, despite efforts from the UK to secure an exemption.

Now the Prime Minister has suggested all options are on the table.

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Speaking at Prime Minister’s Questions, Sir Keir told the Commons: “We’ve been preparing for all eventualities ahead of the confirmation of US tariffs later today.

“Let me be clear with the House, a trade war is in nobody’s interest, 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 will 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.”

Mr Trump will set out the details of his tariffs at at 9pm, which will include a 25 per cent tariff on vehicles sent to the US – something which could cost an estimated 25,000 jobs in the UK.

Also at PMQs, the Liberal Democrat leader Sir Ed Davey urged Sir Keir to will lead a “coalition of the willing” against US tariffs.

He said: “The Prime Minister has shown commendable leadership over Ukraine with his plan for a military coalition of the willing against (Vladimir) Putin.

“Will he now provide similar leadership with an economic coalition of the willing against (Donald) Trump’s tariffs, for free trade, so we can avoid a global trade war and a global recession?”

Sir Keir replied: “I think 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 on defence, on security and intelligence, for reasons that we’ve rehearsed across this chamber.

“I also think it’s wrong on trade and the economy. We have a good deal of trade, a balanced trade relationship with the US, and I believe that our interests are best served by calmly trying to secure a deal which is in our national interest whilst at the same time preparing and leaving all options on the table.”

Earlier in the week Chancellor Rachel Reeves warned Cabinet ministers there would be an economic impact from the tariffs. 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 have warned that US tariffs could eliminate Ms 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 per cent off the size of the UK economy if there is a full-blown trade war with the UK retaliating to Mr Trump’s measures.

Retaliatory tariffs from the UK are not expected immediately, as efforts focus on striking a deal with the White House.

But European Commission chief Ursula von der Leyen signalled Brussels was prepared to respond, saying “we have the power to push back”.