Starmer admits UK will face Trump tariffs this week as US president sparks global recession fears: Live
Starmer and Trump hold ‘productive negotiations’ between US and UK trade dealDowning Street has admitted the UK is now likely to face Donald Trump’s tariffs this week as the US president’s threats of a global trade war sparked fears of a global recession.Markets tumbled across the UK, Europe and Asia on Monday after Mr Trump announced he is set to impose a barrage of high tariffs on imported goods from around the world on his self-described “Liberation Day” on Wednesday.No 10’s admission on Monday marked a blow for Sir Keir Starmer’s government as the UK had been hoping to secure a “UK-US economic prosperity deal”, which would exempt British goods from tariffs on imports into America.But asked whether the government had given up hope of a deal being signed before Wednesday, the prime minister’s official spokesman said that he is “not going to put a time frame on those discussions” but that they are “likely to continue beyond Wednesday”.London’s FTSE 100 was down by more than 1 per cent on Monday, and around 100 points were shaved off the index during the morning’s trading.Trump’s tariffs will have ‘drag on global activity’ Many economists believe that trade tensions sparked by Mr Trump will slow economic growth around the world.The Organisation for Economic Co-operation and Development (OECD) said earlier this month that US trade policy would be a “drag on global activity” and hit living standards around the world.“Overall, consumers face much of the burden of higher tariffs,” the OECD said in its economic outlook report, with real disposable incomes estimated to decline by 1,600 US dollars (£1,237) per household in the US.In terms of the UK impact, experts say there is a great amount of uncertainty about how tariffs will filter through to households and businesses, especially if the country avoids steep penalties.Economists at the Bank of England said the effect on inflation in the UK would depend on how other countries respond with their own trade policies, and how foreign exchange rates are affected.Economist Swati Dhingra, a member of the Bank’s Monetary Policy Committee, has said the UK is sensitive to changing import prices.But she suggested that the inflation impact could be “less than feared” because the main goods that the US imports from the UK, including refined oil, were unlikely to see cost increases on account of tariffs.The Bank, which sets UK interest rates, said it was a “rapidly evolving situation” that it was monitoring closely.Jabed Ahmed31 March 2025 15:29Full report | US stock market spooked by Trump’s reciprocal tariffs on all countries this weekJabed Ahmed31 March 2025 15:09Starmer facing ‘impossible task’ of potential retaliation to Trump tariffs, says expertSir Keir Starmer is facing an “impossible task” in deciding whether to retaliate to Trump’s looming tariffs, an expert has warned.Simon Finkelstein, director of geopolitics at the Brunswick Group said “It would be foolish to do so, however, politically it might become untenable not to do so.”“Fundamentally he’s got an impossible task because the people who work for the President clearly don’t know what he’s going to do on Wednesday either,” he told Times Radio.“But I think the thing [Starmer] has got to do is continue on the same strategy, which is attempt to negotiate some sort of future deal with the US, whether that looks like something sort of wider range or more limited on technology to mitigate the worst aspects of the tariffs.” “The UK government has to at least try,” Mr Finkelstein added.Jabed Ahmed31 March 2025 14:51Pictured | Starmer welcomes the President of Finland to Downing Street for bilateral talks( More