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Starmer says he's ready to help 'shelter' UK businesses from tariffs

'Government's priority remains to try and secure a trade deal with the US'

Starmer says he's ready to help 'shelter' UK businesses from tariffs

Keir Starmer holds a roundtable meeting at Number 10 Downing Street on March 31, 2025 in London, United Kingdom. (Photo by Jack Taylor/Getty Images)

PRIME MINISTER Keir Starmer said on Saturday (5) he was ready to step in to help "shelter" the country's businesses from the fallout from US president Donald Trump's new tariff policies, mooting state intervention for the worst-affected industries.

"We stand ready to use industrial policy to help shelter British business from the storm," Starmer wrote in the Telegraph newspaper.


"Some people may feel uncomfortable about this – the idea the state should intervene directly to shape the market has often been derided.

"But we simply cannot cling on to old sentiments when the world is turning this fast."

While Starmer said the government's priority remains to try and secure a trade deal with the US which could include tariff exemptions, he said he will do "everything necessary" to protect the national interest.

Britain was spared the most punitive treatment in Trump's tariff announcement last Wednesday (2) when it was hit with the lowest import duty rate of 10 per cent, but a global trade war will hurt its open economy.

"This week we will turbocharge plans that will improve our domestic competitiveness, so we’re less exposed to these kinds of global shocks," he said, adding that the government also wanted to strengthen alliances and reduce barriers to trade.

The Telegraph said that Starmer's government could bring in emergency reforms to reduce red tape around regulation and raised the prospect of targeted tax breaks to help affected sectors.

While he hasn't ruled out the possibility of tax increases in the autumn, he pointed out that the government had resisted raising taxes during the Spring Statement.

Labour's industrial strategy, promised in its election manifesto, is expected to be unveiled this summer, with certain aspects potentially brought forward to support UK businesses.

He reaffirmed the government's commitment to remaining calm and securing the best possible deal with the US, while also noting that "all options remain on the table."

He added: "I will only agree to a deal if it’s in the best interest of British businesses and the security of working people."

Conservative leader Kemi Badenoch has urged the prime minister to negotiate a "deep and meaningful trade deal" with the US, one that "promotes growth without lowering standards."

The UK exported goods worth nearly £60bn to the US last year, including machinery, cars, and pharmaceuticals.

Last week, the government published a 400-page list of US goods that could be targeted with tariffs in response. Business secretary Jonathan Reynolds told MPs that the government would consult businesses on how these retaliatory tariffs might impact them.

The list covers 27 per cent of US imports, selected because they would have a "less significant impact" on the UK economy, according to the Department for Business and Trade.

Prime minister also mentioned that he would aim to reduce trade barriers with other nations to minimise the effects of US tariffs on UK exports.

Over the weekend, Starmer held discussions with several world leaders on how to address the US tariffs.

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