Special Relationship? UK responds to Trump’s Tariffs

The Business and Trade Secretary’s statement to Parliament on the imposition of US tariffs

With your permission Madam Deputy Speaker, I would like to make a statement on the United Kingdom’s economic relationship with the United States.

The UK has a strong and balanced trading relationship with the US worth £315 billion which supports 2.5 million jobs across both countries. This is second only to the EU where our trading relationship is worth £791 billion.

Yesterday evening, the United States announced a 10% reciprocal tariff on UK exports and have today imposed a 25% global tariff on cars. This follows the application of tariffs of 25% on US imports of steel, aluminium and derivative products that was announced on 12 March.

No country was able to secure an exemption from these announcements, but the UK did receive the lowest reciprocal tariff rate globally. And though this vindicates the pragmatic approach this Government has taken, we know that while these tariffs are still being levied, the job is far from done.

We are, of course, disappointed by the increase in tariffs on the UK, and on other countries around the world. The impact will be felt amongst all trading nations. But I would like to update the House on how the UK can navigate these turbulent times, acting in our national interest and for the benefit of all our industries.

I would also like to take this opportunity to thank my American counterparts, Secretary of Commerce Howard Lutnick, US Trade Representative Jamieson Greer and Special Envoy Mark Burnett for their engagement over the last few months. While any imposition of tariffs is deeply regrettable, from the beginning, they promised to make themselves available and have been true to their word, and I look forward to our continued engagement over the days ahead.

As Members will know, since the new US administration took office, my colleagues and I have been engaged in intensive discussions on an economic deal between the US and the UK. One that would not just avoid the imposition of significant tariffs but that would deepen our economic relationship. On everything from defence, economic security, financial services, machinery, tech and regulation there are clear synergies between the US and UK markets. And this is reflected in the fair and balanced trading relationship that already exists between our two countries.

I can confirm to the House that those talks are ongoing and will remain so. It is this Government’s view that a deal is not just possible, it is favourable to both countries. And that this course of action serves Britain’s interests as an open-facing trading nation. I have been in contact with many businesses, across a broad range of sectors including those most affected, who have very much welcomed this approach. It is clear to me that industry themselves want to grasp the opportunity a deal can offer and they welcome this government’s cool-headed approach.

Madam Deputy Speaker, in increasingly insecure times – I have heard some Members cling to the security of simple answers and loud voices. I understand the compulsion, but I caution members of this House to keep calm and remain clear eyed on what is in our national interest not to simply proclaim that we follow the actions of other countries.

The British people rightly expect this Government to keep our country secure at home and strong abroad. An unnecessary, escalating trade war would serve neither purpose.

True strength comes in making the right choices at the right time. And thanks to the actions of our Prime Minister, who has restored Britain’s place on the world stage, the UK is in a unique position to do a deal where we can – and respond when we must.

It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths. However, we do reserve the right to take any action we deem necessary if a deal is not secured.

To enable the UK to have every option open to us in the future, I am today launching a request for input on the implications for British businesses of possible retaliatory action.

This is a formal step, necessary for us to keep all options on the table. We will seek the views of UK stakeholders over four weeks until 1st May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say, and influence the design of any possible UK response.

If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from that, will be lifted.  

Further information on the request for input will be published on gov.uk later today, alongside an indicative list of potential products that the Government considers most appropriate for inclusion.

I know this will be an anxious time for all businesses, not just those with direct links to America. Let me say very clearly that we stand ready to support businesses through this. That starts by making sure they have reliable information. Any business which is concerned about what these changes mean for them can find clear guidance and support on great.gov.uk where there is now a bespoke webpage.

Madam Deputy Speaker, this Government was elected to bring security back to working people’s lives. At a time of volatility, businesses and workers alike are looking to the Government to keep our heads, to act in the national interest and navigate Britain through this period. And while some urge escalation, I simply will not play politics with people’s jobs.

This Government will strive for a deal that supports our industries and the well-paid jobs that come with them, while preparing our trade defences and keeping all options on the table.

It is the right approach to defend the UK’s domestic industries from the direct and indirect impacts of US tariffs in a way that is both measured and proportionate, while respecting the rules-based international trading system.

As the world continues to change around us, British workers and businesses can be assured of one constant: that this is a Government that will not be set off course in choppy waters. So the final part of our approach will be to turbo boost the work this government is doing to make our economy stronger and more secure including our new industrial strategy. We will strike trade deals with our partners, and work closely with our allies for our shared prosperity.

We have a clear destination to deliver that economic security for working people.

We are progressing a deal that can do that, we are laying the foundations to move quickly should it not, and we are ensuring British businesses have a clear voice in what happens next. And I commend this statement to the House.

Prime Minister at the White House: “We stand side by side still”

Prime Minister Keir Starmer’s opening remarks at the White House press conference

Thank you very much, Mr President. Thank you for your hospitality, thank you for your leadership. This has been a very good and very productive visit.

And with your family roots in Scotland, and your close bond with His Majesty the King, it’s good to know that the United Kingdom has a true friend in the Oval Office.

And it was so good to see the bust of Winston Churchill back in its rightful place just a moment ago.

But look, in a moment of real danger around the world this relationship matters more than ever. We remain each other’s first partner in defence ready to come to the other’s aid to counter threats, wherever and whenever they may arise.

No two militaries are more intertwined than ours. No two countries have done more together to keep people safe.

And in a few weeks’ time we’ll mark VE Day The 80th anniversary of Victory in Europe. Britain and America fought side-by-side to make that happen – one of the greatest moments in our history.

We stand side-by-side still, today and we’re focused now on bringing an enduring end to the barbaric war in Ukraine.

Mr President, I welcome your deep, personal commitment to bring peace and stop the killing. You have created a moment of tremendous opportunity to reach an historic peace deal – a deal that would be celebrated in Ukraine and around the world.

That is the prize.

But we have to get it right. There’s a famous slogan in the United Kingdom, from after the Second World War – that is that we have to “win the peace.” And that’s what we must do now.

Because it can’t be a peace that rewards the aggressor. Or that gives succour to regimes like Iran.

We agree – history must be on the side of the peacemaker, not the invader. So the stakes, they could not be higher.

And we’re determined to work together to deliver a good deal. We’ve discussed a plan today to reach a peace that is tough and fair – that Ukraine will help to shape – that is backed by strength – to stop Putin coming back for more.

And I am working closely with other European leaders on this. And I am clear – that the UK is ready to put boots on the ground and planes in the air to support a deal. Working together with our allies, because that is the only way that peace that will last.

Mr President, in this new era, you’re also right that Europe must step up. And let me tell you now – I see the growing threats we face and so the UK is all in.

This year we will be giving more military aid to Ukraine than ever. And just this week I have set out how we are shouldering more of the security burden. We’re already one of the biggest spenders in NATO and now we are going much further, delivering Britain’s biggest sustained increase in defence spending since the Cold War.

This isn’t just talk – it’s action. Rebalancing the transatlantic alliance, making us all stronger and standing up for our shared values and shared security. As Britain always has.

Now, Mr President, it’s no secret we’re from different political traditions but there is a lot that we have in common. We believe it’s not taking part that counts – what counts is winning. If you don’t win – you don’t deliver.

And we’re determined to deliver for the working people of Britain and America – who want – and deserve – to see their lives improve. So we’re both in a hurry to get things done.

And that’s what the UK and the US do when we work together: we win – and we get things done.

So we’ll do what it takes to keep our people safe. We will also work together to deliver some big economic wins that can benefit us both.

We have $1.5 trillion invested in each other’s economies, creating over 2.5 million jobs across both economies.

Our trading relationship is not just strong – it is fair, balanced and reciprocal.

We’re leaders together in so many areas: Ranked one and two in the world as investment destinations…one and two for universities…One and two for Nobel prizes…One and two in golf, as well – by the way…

And we’re the only two western countries with trillion dollar tech sectors – Leaders in AI and look, we take a similar approach on this issue.

Instead of over-regulating these new technologies we’re seizing the opportunities they offer. So we have decided today to go further to begin work on a new economic deal with advanced technology at its core.

Look – our two nations, together shaped the great technological innovations of the last century. We have a chance now to do the same for the 21st century.

I mean – artificial intelligence could cure cancer that could be a moonshot for our age and that’s how we will keep delivering for our people.

There are so many opportunities.

Keep our nations strong and fulfil the promise of greatness that has always defined this relationship.

Finally, to underline the importance of this bond, it was my privilege and honour to bring a letter with me today – from His Majesty the King.

Not only sending his best wishes, but also inviting the President and the First Lady to make a State Visit to the United Kingdom: an unprecedented second State Visit – this has never happened before.

It’s so incredible it will be historic.

And I’m delighted that I can go back to His Majesty The King and tell him that President Trump has accepted the invitation.

So thank you. Our teams will now work together to set a date.

Mr President, we look forward to welcoming you in the United Kingdom.

Thank you once again.

PM meeting with President Trump

Prime Minister Keir Starmer and President of the United States Donald Trump met today in the White House. 

The leaders discussed the depth of the special relationship between their two nations and their commitment to shared security and prosperity.  

They spoke about the fair, balanced and reciprocal economic relationship that the two countries enjoy. They agreed their teams should work together to deepen this relationship, and to work together to agree a trade deal focused on tech.  

On defence and security, they agreed that the strength of the UK and US’s intelligence and defence relationship is unrivalled. The Prime Minister underlined the announcement he made this week to increase defence spending to 2.5%  

The leaders agreed that on Ukraine, talks must work towards a lasting peace. The Prime Minister said the UK is ready to play a leadership role on supporting Ukraine’s future security. They discussed their shared commitment to a ‘peace through strength’ approach and that their teams should collaborate on this. 

The President accepted an invitation on behalf of His Majesty The King for an unprecedented second State Visit to the United Kingdom.


Growth and security at heart of PM’s meeting with President Trump

The Prime Minister will be focused on delivering prosperity and security for the British people, when he meets President Trump today in Washington D.Cbut what Mr Trump will be focused on is anyone’s guess

  • Prosperity and security for working people focus of Prime Minister’s meeting with President Trump.   
  • Special relationship between UK and US critical to deliver growth and security, with further collaboration on AI and tech.    
  • Prime Minister to reiterate shared US-UK commitment to reaching a durable and lasting peace in Ukraine, and the need for Europe to step up to the challenge.

The Prime Minister will be focused on delivering prosperity and security for the British people, when he meets President Trump today (Thursday 27 February) in Washington D.C.

The UK and the US share a unique and historic relationship, based on shared values and a mutual commitment to economic and defence cooperation.  

The UK and the US have one of the biggest trading relationships of any two countries in the world, worth around 400 billion dollars and supporting over 2.5 million jobs across both countries.     

This visit comes just days after the third anniversary of Russia’s illegal invasion of Ukraine. The Prime Minister and President Trump share a commitment to delivering lasting peace in Ukraine, and the Prime Minister will reiterate the UK’s commitment to securing a just and enduring peace, bringing an end to Russia’s illegal war.     

The Prime Minister will be clear that there can be no negotiations about Ukraine, without Ukraine and will recognise the need for Europe to play its part on global defence and step up for the good of collective European security.    

On Tuesday, the Prime Minister announced that defence spending will increase to 2.5% of GDP from April 2027, with an ambition to reach 3% in the next parliament. This will drive economic growth and create jobs across the UK, while bolstering national security and protecting borders.   

Prime Minister Keir Starmer said: “The world is becoming ever more dangerous, and it is more important than ever that we are united with our allies.     

“A stable economy, secure borders and national security are the foundations of my Plan for Change, and the US-UK relationship is integral to delivering them. These principles will be at the heart of discussions with President Trump today.  

“There are huge opportunities for us to deepen our special relationship, deliver growth and security, and improve the lives of working people in both our great nations.”

Both countries are world leaders in AI and advanced technologies, and the Prime Minister will be looking to build on these strong foundations to create jobs and economic growth.     

The discussion will have a particular focus on the opportunities that further technology and AI partnerships could deliver. These include a proposal of high-ambition shared moonshot missions across top technologies including quantum and AI, and a deeper partnership on space.     

The US and UK are the only two allied countries with trillion-dollar technology eco-systems, and the Prime Minister will make the case for further integration between the two countries’ tech sectors to make them the most efficient, ambitious technology sectors in the world.     

In October, US tech firms announced a £6.3 billion package of investment to support UK data centres – a central pillar of the government’s plan to ramp up the country’s AI capacity. In January a further £12 billion investment from Vantage Data Centers created over 11,500 jobs as the government published its AI Opportunities Action Plan.   

These investments represent just one facet of the deepening science, innovation, and technology collaboration between both countries. In AI, researchers from both sides of the Atlantic have dedicated research exchange programmes to share knowledge and expertise in delivering the next wave of cutting-edge innovations that improve people’s lives in areas such as personalised care, autonomous surgeries, and cancer diagnosis – on top of a broader AI partnership which has also been signed by the AI Institutes of both countries. 

On a visit to the West Coast at the end of last year Technology Secretary Peter Kyle met a range of companies to bang the drum for further investment in the UK’s technology sector. Just two weeks ago, he also put pen to paper on a new partnership with leading AI firm Anthropic which will explore how the technology can be put to work to transform the public services that UK citizens rely on, and deliver on the government’s Plan for Change.   

The Prime Minister will join President Trump at the White House today, where he will be greeted by the President before signing the White House Guest Book and a tete a tete at the Oval Office. This will be followed by a bilateral lunch, and a joint press conference. He will also carry out a defence-focused visit.   

On arrival on Wednesday night, he met a select group of CEOs from large US businesses to discuss their existing and growing presence in the UK, and the importance of UK-US trade and investment (above).

He will outline the strength of the UK offer to investors: policy stability; an active partnership with government; an open, trading economy; and a reform agenda focused on making it easier to do business.   

The Prime Minister is accompanied by the Foreign Secretary David Lammy, who will join the Prime Minister’s programme at the White House (pictured above with ‘Lord’ Peter Mandelson, who welcomed the UK delegation to Washington).