The Prime Minister said he did not want a ‘trade war’ with the US but that all options remained on the table
US President Donald Trump’s decision to slap a 25% import tax on cars is “very concerning” but the UK will not be “jumping into a trade war” with America, Sir Keir Starmer has said.
The tariff on vehicles imported to the US will come into effect on April 2 in a blow to the UK automotive industry.
The Prime Minister said the UK would continue “intense discussions” with the US on closer trade ties, including measures to ease tariffs, but stressed that all options remained on the table if talks failed.
The US is the second largest export market after the European Union for cars built in the UK.
Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.
At a press conference in Paris, Sir Keir said: “I think tariffs are very concerning, there’s no doubt about that.
“And I’m really clear in my mind that the sector, the industry, does not want a trade war.
“That’s why, first and foremost, we’ve got to work with the sector, work with industry, in our response in relation to this.”
He said the Government would be “pragmatic and clear-eyed” in its approach.
“I think that, rather than jumping into a trade war, it is better, pragmatically, to come to an agreed way forward on this, if we can, and that’s why we’re intensively engaging in the way that we are,” he said.
But he added: “The industry does not want a trade war, but it’s important that we keep all options on the table.”
