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Downing Street Asserts UK National Interest Will Guide Tariff Response
Amid rising global trade tensions following the imposition of US tariffs, Downing Street has affirmed that the UK’s response will be determined by its national interest. Prime Minister Keir Starmer discussed the matter with Australian Prime Minister Anthony Albanese and Italian Premier Giorgia Meloni.
In a statement summarizing Friday’s discussions, No 10 indicated that all leaders concurred that a comprehensive trade conflict would be exceptionally detrimental, according to reports from the PA news agency.
A government spokesperson stated that the Prime Minister has made it clear that the UK’s actions will prioritize national interests, and officials will proceed with measured preparation rather than hasty retaliation.
The spokesperson further elaborated:
“He addressed this strategy with both counterparts, recognizing that while the international economic climate has evolved this week, it has long been evident that allied nations must sustain robust relations and dialogue to guarantee collective security and uphold economic equilibrium.”
Prime Minister Starmer is anticipated to engage in additional discussions with international counterparts throughout the weekend.
To date, ministers have refrained from criticizing Donald Trump, as they aim to secure a trade pact with the US, hoping to obtain exemptions from the tariffs.
Nevertheless, the government has compiled a list of products potentially subject to retaliatory measures and is consulting with businesses about the prospective impact of countermeasures.
Rachel Reeves affirmed on Friday the government’s commitment to achieving the most favorable agreement with Washington.
The Chancellor commented:
“Unquestionably, we oppose tariffs on UK exports, and we are diligently engaging with our US counterparts to represent British interests and bolster British employment and industry.”
The Liberal Democrats have contended that the government’s efforts to appease the White House are ineffective and urged ministers to coordinate a response with allied nations.
Lib Dem leader Ed Davey conveyed in a statement:
“We must resolve this trade dispute promptly. However, the government’s attempts to appease the White House and proposals to reduce taxes for US tech magnates are demonstrably failing.
Instead, the optimal approach to resolve this predicament is to unite with our European and Commonwealth partners. We must synchronize our response and reinforce our trade partnerships with dependable allies. This strategy will safeguard our economy from Trump’s intimidation.”
Key events
Taiwan‘s President Lai Ching-te convened with tech industry leaders on Saturday to deliberate strategies for responding to new US tariffs. He pledged to maintain Taiwan‘s global competitiveness and protect its economic interests, according to Reuters.
President Donald Trump recently declared comprehensive import duties, with significantly elevated rates for numerous trade partners, including Taiwan. Taiwan, which possesses a substantial trade surplus with the US, confronts a 32% duty on its exports. However, semiconductors, a key Taiwanese export, are excluded from these tariffs.
Lai engaged with executives at his official residence to examine responses to the “global economic and trade challenges posed by the reciprocal tariff policy,” stated spokesperson Karen Kuo. She did not disclose the specific companies represented, mentioning only that participants included representatives from the Information and Communications Technology (ICT) sector.
President Lai “aims to provide maximum support to industry, stabilize the economic landscape, ensure Taiwan’s industrial competitiveness on a global scale, and safeguard our nation’s interests and the consistent advancement of our economy,” Kuo elaborated.
Taiwan is home to TSMC, the world’s leading contract chip manufacturer and a crucial supplier for major companies like Apple and Nvidia. TSMC did not immediately respond to inquiries regarding their attendance at the meeting. TSMC is currently in a quiet period preceding its first-quarter earnings announcement on April 17.
On Friday, the Taiwanese government unveiled T$88 billion ($2.67 billion/£2.07 billion) in financial assistance for businesses and sectors affected by the US tariffs.
Taiwan maintains that the tariffs are unjustifiable and has stated its intent to discuss the matter with the US, while refraining from announcing any retaliatory tariffs to date.
US President Donald Trump has historically championed tariffs, once lauding them as “the most beautiful word” and their imposition formed a cornerstone of his presidential campaign. Anticipating this, Downing Street formulated a defensive strategy focused on cultivating a strong rapport with Trump’s White House, despite evident political disparities. They also initiated discussions to secure an economic agreement that would provide tariff exemptions.
Trade negotiations between the UK and US commenced soon after Trump’s inauguration. This preceded the Prime Minister’s visit to Washington in February, with the aim of establishing a focused agreement primarily around advanced technologies. Discussions intensified ahead of the UK Business Secretary Jonathan Reynolds’s meeting with Howard Lutnick, the US Commerce Secretary, just over two weeks prior.
UK officials received assurances from their US counterparts about their favorable position in negotiating a trade accord with Washington. According to an official, “By that stage, we understood the key issues and were largely in agreement, requiring only the resolution of specific details.”
Key negotiators include Reynolds and Varun Chandra, a corporate strategy expert who transitioned into a senior No 10 aide, known as the Prime Minister’s “business confidant.” Officials have noted Chandra’s adeptness in navigating the US administration. One official commented, “He intuitively understands them, and they reciprocate. The discussions have adopted a more corporate style than conventional trade negotiations, reflecting his professional background.”
Kate Joseph, a senior trade department official, alongside Keir Starmer’s international economic affairs advisor, Michael Ellam, have been instrumental in preparing the Whitehall machinery domestically. They developed multiple contingency plans based on diverse tariff regimes Trump might implement.
Netanyahu to Address Tariffs with Trump in Washington, Officials Suggest
Israeli Prime Minister Benjamin Netanyahu is expected to travel to the White House on Monday. Sources indicate he aims to discuss the recently implemented tariffs with US President Donald Trump, according to three Israeli officials cited by Reuters.
Axios initially reported the unscheduled visit, suggesting that should the meeting occur, the Israeli Prime Minister would be the first international leader to meet President Trump personally to negotiate the removal of these tariffs.
Netanyahu’s office has not officially confirmed the visit. Potential discussions are likely to extend beyond tariffs, possibly including Iran and Israel’s ongoing conflict with Hamas in Gaza.
The unexpected invitation from President Trump reportedly arose during a phone conversation on Thursday with Netanyahu, who was visiting Hungary. During this call, the Israeli leader is said to have initially raised the tariff issue, according to anonymous Israeli officials who spoke to Reuters.
Under President Trump’s newly announced sweeping tariff policy, unspecified Israeli exports to the US might face a 17% tariff. The US is recognized as Israel’s closest ally and primary trade partner.
An official from the Israeli Finance Ministry stated on Thursday that President Trump’s recent tariff announcement could potentially affect Israel’s exports of machinery and medical devices.
Israel had previously initiated the cancellation of remaining tariffs on US imports on Tuesday. The two nations established a free trade agreement four decades ago, resulting in approximately 98% of US goods currently entering Israel tax-free.
When Jonathan Reynolds and his team gathered around his office television to witness Donald Trump initiate his global trade war, their anticipation mirrored that of the wider world, with limited insight into the specifics.
On Wednesday evening, the US President was poised to reshape a century of international trade conventions by introducing extensive tariffs on US imports from across the globe.
Moments prior to Trump’s address, Reynolds had been informed to expect a baseline tariff of 10%. However, uncertainty remained regarding supplementary tariffs. Government anticipation suggested a potential 20% rate for the UK, a scenario the Treasury had cautioned could reduce UK GDP by 1%.
As Trump presented his tariff framework, Reynolds and his team experienced a shared frustration with global audiences as the illustrative board repeatedly slipped behind the White House lectern, obscuring crucial figures detailing tariffs for various nations.
It soon emerged that the UK tariff rate was set at 10%, lower than the 20% imposed on the EU, yet equivalent to the baseline applied to countries like Brazil and Afghanistan. Within minutes, Downing Street heralded this as a “vindication” of Keir Starmer’s strategic approach.
“Upon learning of the flat 10% tariff, there was a sense of relief as the outcome could have been considerably worse,” a source disclosed. “It also indicated that commitments regarding our standing were honored. This element of trust will be critical moving forward.”
Despite criticism directed at No. 10 for perceived attempts to appease Trump without substantial returns, government sources argue that the tariff regime could have inflicted significantly greater harm had they not proactively cultivated positive relations and presented their arguments effectively.
They emphasized that the US initially considered incorporating VAT—which has a standard 20% rate and has been a frequent target of Trump’s criticism—into their calculations. However, Starmer reportedly argued against this directly and publicly during his White House visit in February. “We were successful in persuading them to reduce it,” a source claimed.
Canadian High Commissioner to UK Deems Tariffs ‘Illogical’ and ‘Damaging’ to US
Ralph Goodale, Canadian High Commissioner to the UK, conveyed his concerns to BBC Radio 4’s Today program:
“Our stance is one of resolve. The measures initiated by the US administration are entirely without logic.
These tariffs will be detrimental to the United States itself. They will inflate domestic costs, eliminate American jobs, and curtail US economic expansion. We must unequivocally demonstrate, not just through rhetoric, that these repercussions are inevitable. The US needs to feel the economic strain, as ultimately, it will be the American populace that compels their government to cease this imprudence.”
He noted that Canadian Prime Minister Mark Carney’s resolute position has garnered “strong support” from the Canadian population:
“I have never encountered such unity and determination amongst Canadians on any issue before.
Mr. Carney’s strategy is thoughtful and measured, enjoying extensive backing from Canadians. The solidarity among Canadians on this matter is unprecedented.”
He added:
“When subjected to aggression, we will retaliate, assert our position globally, and fortify our own economy to better insulate ourselves from such exploitation in the future.”
Donald Trump’s sweeping alterations to US trade policy this week signify a turning point from an era of globalization. This development has caused alarm among individuals, governments, and investors globally. However, as the US president asserted, this shift should not be unexpected.
The unveiling of tariffs, ranging from 10% to 50%, on US trade partners precipitated a sharp downturn in stock markets. Trump’s announcement was portrayed as a “declaration of economic independence” so profound it evoked comparisons to Britain’s departure from the European Union – Brexit.
Trump, who secured re-election on promises that tariffs would “Make America Great Again,” has consistently advocated for the re-implementation of widespread tariffs for decades. “I have been discussing this for 40 years,” he stated in the White House Rose Garden.
Many businesses, economists, and political figures regard Trump’s trade strategy as misguided, flawed, and fraught with risk. Some have even jokingly speculated whether it might have been formulated by AI. Yet, his long-standing advocacy for tariffs over many decades is undeniable.
“This consistency is unusual for Trump, who, in many respects, is a conventional politician without deeply held convictions,” notes Larry Sabato, director of the Center for Politics at the University of Virginia. “Tariffs are different. This is one area where his conviction appears deep-seated.”
Nissan Motor is mulling over re-allocating some of its domestic production of vehicles destined for the US market to facilities within the United States. This consideration arises as President Donald Trump escalates trade tariffs on a global scale, according to a Nikkei report on Saturday.
As early as this summer, Nissan is contemplating a reduction in output at its Fukuoka plant in western Japan. Simultaneously, it plans to shift part of the manufacturing of its Rogue SUV to the US. This strategic adjustment aims to lessen the impact of Trump’s tariffs, the business daily indicated, without disclosing its source.
The Japanese automaker’s Rogue SUV, a sought-after model in the US, is currently produced in both Fukuoka and the US, detailed the report by Reuters.
Earlier in the week, following initial tariff announcements from Trump, Nissan declared it would cease accepting new US orders for two Infiniti SUV models manufactured in Mexico. This move indicated a significant downsizing of its operations at a joint venture manufacturing site.
The car manufacturer now intends to sustain two production shifts for the Rogue at its Smyrna, Tennessee, plant. This decision comes after a January announcement that it would discontinue one of the two shifts this month.
Nissan’s US sales approximated 920,000 vehicles in the preceding year, with around 16% imported from Japan, according to Nikkei. The proposed production shift could adversely affect local suppliers’ businesses.
Italian Economy Minister Giancarlo Giorgetti issued a caution on Saturday against implementing retaliatory tariffs targeting the United States. This follows President Donald Trump’s recent pronouncement of extensive tariffs impacting numerous trade partners.
Speaking at a business convention near Milan, Giorgetti conveyed Italy’s objective to seek a “de-escalation” in trade tensions with the US, as reported by Reuters.
“We must avert initiating a cycle of counter-tariffs, which could be detrimental to all involved, particularly ourselves,” Giorgetti emphasized.
Under President Trump’s tariff framework, Italy, characterized by a significant trade surplus with the US, alongside other European Union member states, will be subjected to a general tariff rate of 20%.