Starmer says it's a 'completely new world' as Trump's tariffs cause markets to tumble

Sir Keir Starmer called for calmness as global markets plunged in response to Donald Trump’s sweeping tariffs. The Prime Minister said, "This is a moment for cool heads, nobody wins from a trade war, you know that."

The value of US stocks dropped sharply as markets opened this afternoon, following falls in London and across Europe and Asia earlier.

Speaking at a Jaguar Land Rover plant in the West Midlands, Sir Keir said: "These are challenging times, but we have chosen to come here because we are going to back you to the hilt."

He said the visit was a "statement of intent", showing the Government’s support for an industry which has been hit with a 25% tariff by Mr Trump. The president has imposed a 10% tariff on US imports of British goods, along with the 25% tariff on cars and separate import taxes for steel and aluminium.

According to Starmer, "this is not a passing phase" and was a "completely new world", with the economic turbulence following the defence and security instability caused by the war in Ukraine.

He said: "Let me be really clear, at a moment like this, our future is in our hands, and so of course, we will keep calm and fight for the best deal with the US, and we’ve been discussing that intensely over the last few days.

"But we are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe."

The Prime Minister hopes to be able to strike an economic deal with the White House to ease the tariffs imposed by Mr Trump.

Markets on Wall Street fell steeply as they opened before rallying, while in London the FTSE 100 hit its lowest level for a year.

Mr Trump showed no sign of changing course, urging people to "be strong, courageous and patient", promising that "greatness will be the result".

Asked whether other green initiatives could be eased to protect businesses, Sir Keir said "there’s a global race on for the jobs of the future in relation to net zero" and "I don’t think now is the time to step away from that race".

Reform UK leader Nigel Farage, who has long supported Mr Trump, said he thought the tariffs were "a bit excessive".

"He promised he’d do it in the run-up to the American election," said Mr Farage. "So you can’t say he’s breaking his promises, but I think the impact of it – my own view is the impact of it has been bigger than he could have predicted."

He said he speaks to Mr Trump "far less" now than he did during his first term as US president.

Image credit: PA Media