UK Prime Minister Keir Starmer has signaled his readiness to use state-led industrial policy to protect British businesses from the economic fallout of sweeping tariffs announced by U.S. President Donald Trump.
Writing in The Sunday Telegraph, Starmer said the UK government is prepared to intervene directly in the economy to safeguard national industries, particularly in response to a new wave of American import duties.
This week, the U.S. imposed a 10% baseline tariff on imports from several countries, including the UK. British exports such as cars, steel, and aluminium will also face steeper tariffs of up to 25%. The measures are set to expand further on 9 April, with some countries facing tariffs as high as 50%.
“We stand ready to use industrial policy to help shelter British business from the storm,” the Prime Minister wrote. “Some people may feel uncomfortable about this – the idea that 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.”
Starmer said his government remains committed to pursuing a trade deal with the United States to avoid the most damaging effects of the tariffs, but insisted the UK must strengthen its domestic economy in the meantime.
“This week we will turbocharge plans that will improve our domestic competitiveness, so we’re less exposed to these kinds of global shocks,” he added.
