While the US president has rocked international trade markets by unveiling a range of taxes on all foreign imports, the government has refused to issue any “knee-jerk” response.
The UK was hit with a 10% tariff on all British goods going to the US – along with a global 25% levy on cars and steel products.
But the prime minister has suggested he will not issue any reciprocal tariffs until after his four-week consultation with businesses – and the UK’s renewed bid to get a US economic deal – concludes on May 1.
Speaking to trade secretary Jonathan Reynolds on BBC Newsnight, presenter Derbyshire demolished the PM’s attitude.
“Canada, the EU, China – they’re all fighting back,” she said. “Is there a point when Keir Starmer starts to look timid in the face of President Trump?”
Reynolds replied: “I think that’s a total misreading of the situation. Being calm does not mean you’re passive.
“Being calm is about making sure you’re pursuing your national interests – in this case, a deeper fairer trade relationship between ourselves and the US. ”
He said it was also about the domestic response to support UK industries about supporting trade defence – while monitoring what was happening.
Derbyshire replied in disbelief: “Monitoring? Monitoring?”
The presenter then asked: “How confident are you that the UK isn’t going to go into recession?”
He said: “This is a really difficult situation, I think people recognise that. I don’t think it’s helpful to get into hyperbole or to catastrophise this.”
He said the UK was getting onto the frontfoot with other markets.
Asked again about the chances of a UK recession, he said: “Look, I am not relaxed about the situation we find ourselves in as a global economy.
“But I am absolutely robust in saying we are doing everything we can to navigate this global situation as best we can.”
He also refused to say whether he was with billionaire and informal adviser to the White House Elon Musk, who has called for a “zero tariff situation” between the US and Europe, or Trump.
Reynolds said the UK will “remain committed to open, free and fair trade and rules governing how we do that”.
#Victoria #Derbyshire #Rips #Reaction #Tariff #Turmoil
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