Trump’s tariffs are ‘not a passing phase', says Starmer as PM warns ‘the world is changing before us’

8 April 2025, 16:42

Sir Keir Starmer has admitted Trump's tariffs are 'very challenging' but he won't change his economic plan.

Sir Keir Starmer told the Liaison Committee on Tuesday that he's "disappointed to see tariffs in place", but they are "not a passing phase".

Sir Keir Starmer said: "I think what's happened over the last week or so is obviously very challenging. Very challenging for us, and very challenging around the world."

"I'm very obviously very disappointed to see tariffs in place. I don't think that they are good for our economy or for economies around the world.

"And my instinct is that we shouldn't jump in with both feet to retaliate, so in that sense, I'm not changing my plans."

This comes as Donald Trump faces growing pressure following his decision to slap tariffs on nearly all countries across the world.

The US President has refused to pause the tariffs despite the plummeting stock market causing stock market turmoil.

Sir Keir said the government should "keep our options on the table and do the preparatory work for retaliation if necessary".

He added that this is not a "temporary, passing phase" but rather shows "the world is changing before us".

The Prime Minister said he wanted to ensure the UK economy is “resilient and thriving” and said changes to the zero emissions vehicle mandate and clinical trials announced on Monday were aimed at paving the way for this.

Asked if the Government could intervene to prevent recession, similar to steps taken during the Covid pandemic, the Prime Minister emphasised ministers were prioritising support that was “more in the nature of breaking down barriers that are in the way” rather than spending cash.

The Government is not open to “trading away” access to the NHS as part of a trade deal with the US, Sir Keir Starmer signalled.

Layla Moran, the Lib Dem chairwoman of the Commons Health and Social Care Select Committee, asked if the NHS would be on the table in a trade deal, including “drug patents, negotiated prices for medicines and market access for US companies”.

The Prime Minister replied: “I have been very protective of the approach we take to the NHS in any dealings with any other country because it is our greatest asset, and we are not trading it away.

“That is the approach that I take here.”

While he said more could be done to make use of NHS data domestically, Sir Keir added: “But I take a protective approach when it comes to the NHS.”

In the same committee meeting Sir Keir said there must be an investigation into the killing of 15 humanitarian workers in Gaza and insisted that international law “underpins everything we do bilaterally and multilaterally”.

The Prime Minister was asked by chairwoman of the International Development Committee and Labour MP Sarah Champion how the UK will comply with “the International Court of Justice’s legal opinion of Israel’s illegal occupation of Palestine” and how Britain will implement its legal obligations under the UN General Assembly Resolution.

He told the Commons Liaison Committee: “Of course I believe in international law and I accept it underpins everything we do bilaterally and multilaterally.

"We are members of various courts and institutions and that is one way of holding countries to account but we also hold countries to account bilaterally in the discussions that we have at whatever level, whether that’s leader to leader, whether that’s foreign secretary to foreign secretary. We are critical of Russia as the aggressor in Ukraine because it’s a breach of the UN Charter. That is a rules-based system."

Asked about Israel and the occupation of Palestinian territory, he said: "I think the occupation is unlawful… that’s been long-standing Government policy."

Asked whether the UK would be pushing for an inquiry into the 15 aid workers that were killed in Gaza, Sir Keir said: "There’s got to be an investigation into that, and we have to be absolutely clear that we are not just talking about that isolated incident. There has got to be enough aid getting into Gaza at speed and at pace … the resumption of hostilities is the wrong thing, in my view."