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      UK could retaliate to Trump’s tariffs if no US trade deal is secured, business secretary says

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      Keir Starmer’s government could hit the US with retaliatory tariffs if the UK cannot strike a trade deal with Donald Trump. Business Secretary Jonathan Reynolds told MPs that ministers will look at “possible retaliatory action” in response to 10 per cent levies on British goods entering the US,as officials work through 417 pages of products they could target. It comes as the prime minister was unable to rule out another tax raid or more cuts to benefits in a bid to balance the government books. The Office for Budget responsibility (OBR) had already warned Trump tariffs would wipe out all the fiscal headroom established by chancellor Rachel Reeves in her spring statement last week.And as businesses began to assess the economic turmoil unleashed by the US president the Federation of Small Businesses (FSB) revealed that around a third (32 per cent) of small and medium sized firms have been hit by the tariffs.Prime Minister Sir Keir Starmer (Jonathan Brady/PA) More

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      True scale of welfare cuts ‘closer to £9bn’, experts warn

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      Labour’s recently announced cuts to welfare spending may be much more severe than the government is claiming, several experts have warned. The headline £4.8bn figure placed on the cuts conceal their ‘true scale’, new analysis argues, as ministers continue to rebut criticism of the measures.The reforms, which largely focused on health and disability benefits, were announced by work and pensions secretary Liz Kendall on 18 March. The following week, chancellor Rachel Reeves revealed the scale of these cuts to be £4.8bn at Labour’s spring statement – as independently assessed by the Office for Budget Responsiblity (OBR).Announcing the plans, Ms Reeves said: “The Labour Party is the party of work. We believe that if you can work, you should work. But if you can’t work, you should be properly supported.”But a new report from the New Economics Foundation (NEF) has found that around £2bn in cuts has gone unstated due to how the OBR has costed the proposals. In its forecast, the spending watchdog takes £1.6bn away from the headline cuts figure to reflect Labour’s decision not to continue Conservative proposals to reform the Work Capability Assessment (WCA).Chancellor Rachel Reeves delivering her spring statement in the Commons (House of Commons) More

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      Trump’s tariffs, Brexit and Keir Starmer’s next move: Ask John Rentoul anything in exclusive Q&A

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      Welcome to an exclusive Ask Me Anything session with me, John Rentoul, The Independent’s chief political commentator.Keep scrolling for more. If you want to jump straight to the Q&A, click here.Donald Trump has launched a fresh wave of tariffs, including a 10 per cent duty on all British exports to the US, in a dramatic escalation of his trade war. Dubbed “Liberation Day”, the president’s announcement has sent shockwaves through global markets, with European nations hit even harder, some facing tariffs of up to 34 per cent.The UK government, under Keir Starmer, has so far failed to secure an exemption, though officials insist negotiations are continuing. Ministers argue that Britain’s 10 per cent tariff – half the level imposed on EU nations – is a sign of their diplomatic strategy paying off; although Brexiteers claim it as a benefit of leaving the EU. Even so, British businesses, especially in the automotive and manufacturing sectors, will still suffer.In response, the Labour government is balancing two key trade relationships: managing the fallout with the US while fending off calls to pivot back towards Europe. At home, Starmer’s administration is under pressure to act decisively. The prime minister insists he will take a “calm, pragmatic” approach, refusing to be drawn into retaliatory tariffs. Business leaders, however, are growing increasingly concerned.So, what does Trump’s latest move mean for the UK economy? How will it impact post-Brexit Britain’s place on the global stage? And what should Starmer’s next steps be?Join me live at 1pm BST on Friday, 4 April, as I tackle your questions on tariffs, Brexit, UK-EU relations, and what the markets might do next.Submit your questions in the comments below. If you’re not already a member, click “sign up” in the comments section to participate. For a full guide on how to comment, click here.Don’t worry if you can’t see your question right away – some may be hidden until the Q&A starts. See you at 1pm! More

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      The truth about Trump’s tariffs and the ‘Brexit dividend’

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      Within minutes of Donald Trump’s announcement on so-called “reciprocal tariffs” around the world, Brexiteers were claiming victory because the UK escaped with half the rate imposed on the EU.But if the UK’s 10 per cent import tariffs to the American market compared to the EU’s 20 per cent, is the best economic justification for Brexit that can be made, then supporters of leaving the EU are clutching at straws.The first and most obvious point is that Brexit has not spared the UK from having tariffs imposed on it by the one world leader who was the biggest cheerleader outside Britain for the UK leaving the EU.Trump with his tariffs list More

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      Voices: Is the NHS in crisis? Join The Independent Debate as public satisfaction hits record low

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      A new poll has revealed a dramatic collapse in public satisfaction with the NHS, with almost two-thirds of people across England, Scotland, and Wales expressing their dissatisfaction. The British Social Attitudes (BSA) survey found that 59 per cent of respondents were “quite” or “very” dissatisfied with how the health service is run — the highest level recorded since the survey began in 1983.Concerns over access to care, long waiting times, and staffing shortages have contributed to this growing frustration. Worryingly, nearly one in ten people also reported experiencing harm due to NHS treatment or lack of access to care, with many suffering severe impacts.Despite this dissatisfaction, the majority of the public still believe in the founding principles of the NHS, calling for more funding and staff to restore trust in the system. Health Secretary Wes Streeting said the Government has “taken the NHS off life support,” citing a £26 billion investment, an end to strikes, falling waiting lists, and two million extra appointments delivered early.But critics are warning that these figures should serve as a wake-up call, urging the government to take urgent action.So, what’s your experience? Have you been impacted by NHS delays or a lack of access? Do you think the health service is in crisis, or is it still delivering for patients?And crucially, what should be done to fix it? Should the government be investing more, or does the NHS need deeper structural reforms?We want to hear from you. Vote in our poll and share your thoughts in the comments – we’ll feature the most insightful responses and discuss the results in the coming days.All you have to do is sign up and register your details – then you can take part in the debate. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen.Share your thoughts in the comments – we’ll feature the most compelling responses and share the results in the coming days.All you have to do is sign up and register your details – then you can take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen. More

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      Trump ‘acted for his country’ with tariff plans, Starmer says

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      Donald Trump was “acting for his country” when he slapped a 10 per cent tariff on all British exports to the United States, Sir Keir Starmer has said. The prime minister vowed to act in Britain’s interests in return, but indicated he would not hit back with retaliatory measures and instead would “keep a cool head”.As he met business leaders to discuss the measures in Downing Street, Sir Keir warned: “Clearly, there will be an economic impact from the decisions the US has taken, both here and globally.”Keir Starmer is seeking to strike a deal with Donald Trump More

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      Trump tariffs: What does the UK trade with America?

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      Donald Trump has imposed 10 per cent tariffs on all of the United Kingdom’s exports to the United States.There are higher tariffs for cars and car parts – 25 per cent – which will also extend to all computer imports, including laptops.The list includes tariff codes for engines, transmissions, lithium-ion batteries and other major components, along with less expensive parts including tires, shock absorbers, spark plug wires and brake hoses.Trump says the tariffs are the US’s “declaration of independence”.However, UK businesses have labelled them “devastating”.Here is a look at how much trade the UK has with the US, based on figures published by the Office for National Statistics.U.S. President Donald Trump announces tariffs in the Rose Garden at the White House More

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      Tariffs live: Trump unveils 10% reciprocal tariff on imports from UK and 20% on EU in global trade shake-up

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      Trump says America has been ripped off and raped for decadesDonald Trump slapped a 10 per cent tariff on US imports of UK goods as he set out sweeping trade levies hitting countries across the world.The US president said his “liberation day” announcement was a “declaration of economic independence”.Mr Trump confirmed that from 5am on Thursday a 25 per cent tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.And he indicated tariffs of 10 per cent would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world.Other blocs with higher tariffs on US goods were hit with tougher import taxes, including 20 per cent for the European Union.Sir Keir Starmer’s government hopes to strike an economic deal with the White House which will mitigate the impacts. But chancellor Rachel Reeves acknowledged the UK would not be “out of the woods” even if a deal could be reached.Mr Trump predicted “foreign presidents, prime ministers, kings, queens, ambassadors and everyone else” would soon be calling him to ask for exemptions from the tariffs. Analysis: Trouble ahead if Starmer fails to have UK tariff liftedThe prime minister will face some brickbats for failing to win a carve-out from tariffs with what many see as a fawning approach to Donald Trump, writes David Maddox, The Independent’s political editor.But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.There is though a very much wait-and-see on that.So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.A failure to get rid of them will leave the UK government in a lot of trouble.Jane Dalton3 April 2025 03:00EU manufacturers urged to move to UKAt least one Brexiteer has suggested European manufacturers move their businesses to the UK to benefit from the lower 10% tariff than the 20% in the EU.Jane Dalton3 April 2025 02:30Tariffs will drive up prices globally, warns Chambers of CommerceThe head of the British Chambers of Commerce says the new tariffs will wreak havoc on business communities globally, driving up prices, but that retaliatory tariffs should be only a last resort.Shevaun Haviland, director general, said: “The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on business communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.“The UK is not without influence, our bilateral trade with the US is worth £300 billion, we have £500 billion invested there and it has £700 billion tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for Government to consider.”She said decisions on taxes would need to be taken very carefully, and the government should keep everything on the table during talks, but retaliatory tariffs should only be a last resort. “Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.”Jane Dalton3 April 2025 02:00How Trump’s tariff plan will workJane Dalton3 April 2025 01:30No escape for UK as Trump targets ‘foreign cheaters’ in new global trade warJane Dalton3 April 2025 01:00Trump claims US industry ‘reborn’ – full report Jane Dalton3 April 2025 00:28Trade war would weaken West, warns Italian PM Italian prime minister Giorgia Meloni said Mr Trump’s new tariffs were wrong, and that she hoped to work with the US and Europe to avoid a trade war that would weaken the West.Belgium EU SummitJane Dalton2 April 2025 23:58Lower levy saving thousands of jobs, No 10 saysThe prime minister’s office hinted at relief that the announcement wasn’t worse.A Downing Street source said: “We don’t want any tariffs at all, but a lower levy than others vindicates our approach.”It matters because the difference between 10% and 20% is thousands of jobs.”We will keep negotiating, keep cool and keep calm. We want to negotiate a sustainable trade deal, and of course to get tariffs lowered. Tomorrow we will continue with that work.”No immediate retaliatory measures are expected from the government as it focuses on trying to strike the hoped-for economic deal with the US.But experts say more than 25,000 UK car manufacturing jobs could be at risk from the 25% tariff on cars. Make UK is calling on the Government to launch a long-term industrial strategy which has advanced manufacturing at its heart (Owen Humphreys/PA) More