'They're non-negotiable': UK won't change fiscal rules in response to Trump's tariffs, minister insists
6 April 2025, 11:51 | Updated: 6 April 2025, 12:24
The UK will not change fiscal rules in response to Donald Trump's tariffs, a Treasury minister has insisted.
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Speaking to LBC's Lewis Goodall, Chief Secretary to the Treasury Darren Jones said the UK was "disappointed" by Trump's tariffs.
He acknowledged that the "world has changed" and the Government needed to respond to that - but insisted the Chancellor's fiscal rules were non-negotiable.
"We've been clear that we are disappointed by tariffs," Mr Jones said.
"We don't think a trade war or a tariff war is in the interest of any economy, let alone our own. But obviously the world has changed and we need to respond to that.
"That's why the Prime Minister will be setting out further details about what work we'll be doing in support of UK businesses, working with them to create a stronger and more resilient economy and better trading opportunities for them across the world as well."
Read more: Sir Keir Starmer vows to 'shelter' British firms from the 'storm' of Donald Trump's tariffs
Asked if there could be changes to fiscal rules as a result of the tariffs, Mr Jones said: "No. The fiscal rules are non-negotiable. We've been very clear about that and they continue to be non-negotiable."
He went on to say that "any type of trade war will have an impact on global markets".
"The Chancellor was very clear about that recently," Mr Jones said. "That's obviously unwelcome. There's little that we can do about that apart from trying to use our influence around the world.
"What it means for us in the UK, is that we have to go further and faster in bolstering the UK economy, both domestically, supporting industry and workers here, and then opening up other trading opportunities with other countries around the world."
Watch Again: Lewis Goodall is joined by Chief Secretary to the Treasury Darren Jones
Mr Jones also denied that the UK is "sucking up to the US" by not moving to retaliate.
"We wouldn't call diplomacy sucking up," he said. "I think it's a good idea that we're diplomatic with our partners around the world.
"If you compare ourselves with other large, complex, advanced economies in the world, we have some of the lowest tariffs that have come through. But that is not something that we're happy with.
"It is a vindication of our diplomacy and the fact that we're ahead of the pack in negotiating on our trade agreement...I think will show that our relationship with the United States is important and will continue to be important in the years ahead."
It comes after the PM pledged to "do everything necessary” to defend the national interest.
"These new times demand a new mentality," Starmer wrote in the Telegraph on Saturday.
He added that he would "continue to make the case for free and open trade,” saying “we stand ready to use industrial policy to help shelter British business from the storm".
The comments come after Jaguar Land Rover "paused" shipments to the US over the tariffs.
Trump's 'Liberation Day' tariffs officially came into force on Saturday, with global stock markets plunging deeper into the red in response to the import taxes.
It came after a 25% levy on all foreign cars imported into America came into force on Thursday.
But the US president has insisted that the "economic revolution" will deliver "historic" results.
He claimed that there had already been more than five trillion dollars of investment.
However, Jaguar Land Rover (JLR) said it was halting shipments as it worked to "address the new trading terms".
A JLR spokesperson said: "The USA is an important market for JLR's luxury brands.
"As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans."
Posting on Truth Social earlier on Saturday, Trump said: "China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly.
"We have been the dumb and helpless 'whipping post', but not any longer. We are bringing back jobs and businesses like never before.
"Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN.
"HANG TOUGH, it won’t be easy, but the end result will be historic. We will, MAKE AMERICA GREAT AGAIN!!!"
Read more: Trump tariffs come into force as global stock markets plunge deeper into the red
UK Government mulls response to Trump’s tariffs as global markets slide
Meanwhile, the FTSE 100 plummeted on Friday in its worst day of trading since the start of the pandemic, while markets on Wall Street also tumbled.
Australia's stock market dropped 191.90 points (2.44%) at close on Friday, setting a new 100-day low, while Italian markets closed 6.5% down.
Read more: Nintendo delays pre-orders for new Switch 2 gaming console amid Trump tariffs
The "baseline" 10% US tariff on goods imported from around the world came into effect shortly after 5am on Saturday UK time.
Many other countries will see their tariff rates increase above that next week - including the EU, which will be hit with a 20% rate.
A 25% tariff imposed on all foreign cars imported into the US came into effect on Thursday.
Suck it up or retaliate? Britain considers tariff response
Starmer is thought to be pushing for Trump to visit Scotland this year, for a meeting with the King at Balmoral.
The president may also visit his Turnberry golf course, which is in Scotland too.
A visit could be as soon as June or in late August or early September, the Telegraph reported.
It would be in addition to the state visit offered during Starmer's trip to the White House, which is likely to take place next year at the earliest.
Trading across the world has been hammered in the aftermath of the President's announcement at the White House on Wednesday.
London's top stock market index shed 419.75 points, or 4.95%, to close at 8,054.98 on Friday, the biggest single-day decline since March 2020 when the index lost more than 600 points in one day. The Dow Jones fell 5.5% on Friday as China matched Trump's tariff rate.
Beijing said it would respond with its own 34% tariff on imports of all US products from April 10.
All but one stock on the FTSE 100 fell on Friday, with Rolls-Royce, banks and miners among those to suffer the sharpest losses.
It is expected that Sir Keir will take further calls with counterparts over the weekend.
Ministers have so far avoided criticism of Trump as they seek to secure a trade agreement with America, which they hope could secure some exemption from the tariffs.
The PM has said the Government will respond with "cool and calm heads".
But the Government has drawn up a list of products that could be hit in retaliation, and is consulting with businesses on how any counter measures could impact them.
Speaking to LBC's Henry Riley, US Political Commentator and Republican Delegate Angie Wong said: "The right approach [for Starmer] is don't react.
"President Trump, the art of the deal President, is notorious for doing this. That's what the world needs to understand.
"He loves throwing out these extreme measures only to see your reaction, how the opposite side reacts, then he knows how to negotiate with you."
Chancellor Rachel Reeves said on Friday that the Government is "determined to get the best deal we can" with Washington.
"Of course, we don't want to see tariffs on UK exports, and we're working hard as a government in discussion with our counterparts in the US to represent the British national interest and support British jobs and British industry," the Chancellor said.
The Lib Dems have said that the Government's "attempts to appease the White House" are not working, and called on ministers to coordinate a response with allies.
Calum Miller said in a statement: "We need to end this trade war as quickly as possible, but the Government's attempts to appease the White House and its offers to cut taxes on US tech billionaires simply aren't working.
"Instead, the best way to end this crisis is to stand shoulder to shoulder with our European and Commonwealth friends. We must coordinate our response and strengthen our trading relations with our reliable allies. That's how we can protect our economy from Trump's bullying."
In a post on TruthSocial, Trump said the United States needed to "hang tough" in the face of the trade changes.
"Big business is not worried about the tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our economy," he said.
