Sir Keir Starmer has hit out at the “dangers” of tariffs, putting the prime minister on a collision course with incoming US president Donald Trump.
The Labour leader said he was “not a fan” as he was grilled by MPs on the Commons Liaison Committee about how he plans to deal with the next occupant of the White House.
Experts have warned of a looming trade war after Mr Trump himself said: “Tariff is my favourite word.”
In the run-up to his election, the Republican promised to implement 10 to 20 per cent tariffs on all goods coming into the country – a figure that rises to 60 per cent for those from China.
Already there have been warnings from the National Institute of Economic and Social Research (NIESR) think tank that the change could halve UK economic growth.
Asked how he would dissuade Mr Trump from imposing them on the UK, the prime minister said: “It won’t come as any surprise to you, I am not a fan of tariffs and, therefore, we have to make sure that we avoid tariffs.
“We have got very good trade with the US, as we have got very good trade with other countries around the world. I want to improve on that.”
He declined to give details of recent conversations with Mr Trump, but added: “Am I alive to the danger of tariffs? Yes of course. I’m against tariffs, but I’m not going to speculate as to what the incoming president might do.”
He was grilled by Labour MP Liam Byrne who has previously described the threats as “the doomsday scenario we are now confronting”.
“If that does go ahead that is going to have a really significant impact on growth, inflation and interest rates in the UK,” he added.
Mr Byrne also called for the British government to appeal to Mr Trump’s fears over US defences and security when it comes to China to argue that higher duties mean weaker defences.
Mr Trump’s threats have also led to increased calls for Sir Keir Starmer to strengthen British ties with Europe.
The chancellor Rachel Reeves has promised the UK will make “strong representations” to Mr Trump over tariffs which could hit Britain’s economy.
