UK (Parliament Politics Magazine) – Keir Starmer’s hopes for tariff relief fade as Trump’s economic adviser suggests only an “extraordinary deal” could reduce the 10% US tariff on the UK.
As reported by The Guardian, a senior economic adviser to Donald Trump emphasized that it would require an “extraordinary deal” to mitigate the 10% US levies on Britain.
What did Kevin Hassett say about reducing US tariffs?
Kevin Hassett, an economist and adviser to Trump, stated that any agreement to reduce tariffs below 10% would be “extraordinary.”
He said,
“I think everybody expects that the 10% baseline tariff is going to be the baseline,” adding, “It is going to take some kind of extraordinary deal for the president to go below there.”
How do Trump’s tariff reductions impact UK trade negotiations?
Under pressure from falling financial markets, Trump lowered retaliatory tariffs on all nations to 10%, while Chinese goods continued to face a 145% levy.
Britain remains under the same tariff imposed during Trump’s “liberation day” policy. Keir Starmer’s government continues to seek a free trade agreement to ease the tariff burden. The UK also faces a 25% tariff on steel and cars, aiming to lessen the economic strain.
What did Keir Starmer say about not speaking to Trump on tariffs?
British Prime Minister confirms he has yet to speak with Trump since the trade tariffs were introduced. UK officials say Britain had no advance notice of the recent tariff adjustments.
Britain continued to push for tariff reductions through a trade agreement, but Downing Street highlighted the changing global landscape and the other strategies needed for economic growth and partnerships.
During a visit to Doncaster, Sir Keir highlighted that the UK could not afford to “sit back and hope” the tariffs wouldn’t be implemented. He called on the government to
“rise to the moment here, recognise where our future lies, renew Britain and deliver security for working people.”
At a Republican Party event in Washington DC, Mr Trump said nations were “kissing my ass” to secure trade talks.
When asked about the language used by Trump, Mr Starmer reiterated that the US is the “closest ally” of the UK. He stressed the need for a “calm and pragmatic approach” in discussions.
In response to the question of whether Trump was ignoring his calls, he stated,
“No, not at all. The UK and US teams are in constant communication, as you’d expect from close allies.”
Sir Keir added,
“We are continuing to talk to the US about how further we can mitigate the impact of the tariffs,” adding, “But a trade war is in nobody’s interest and there is no business sector that is being impacted by these tariffs who is saying jump in with both feet to retaliate and cause a trade war.”
How will Trump’s 90-day Tariff pause impact global markets?
Mr Trump’s unexpected decision to pause hefty tariffs for 90 days provided relief to struggling global stock markets, with London’s FTSE 100 among the beneficiaries.
US stocks faced further steep losses as Wall Street grappled with the economic impact of tariffs. The S&P 500 declined by 3.5%, and the Nasdaq Composite dropped 4.3%, with Trump blaming “transition problems” for the market downturn.
Rachel Reeves to push for stronger UK-US relations
Rachel Reeves plans to negotiate with the US during her visit to Washington at the end of April for the IMF’s spring meeting of global finance ministers.
She stated the UK-EU summit on May 19 would provide a chance to “refresh our relationship and ease trade for businesses.”
Which UK cities will be impacted by the US tariffs?
Below is the list of cities that will be affected by US levies:
- Coventry
- Derby
- Telford
- Wales (as a region)
- West Midlands (as a region)
- York
- Edinburgh
- London
- Cardiff
- Scunthorpe
- Teesside
- Skinningrove
- Port Talbot
- Malvern