UK braces for 'Liberation Day' as Starmer makes last-ditch bid to avoid Trump tariffs

1 April 2025, 23:57 | Updated: 2 April 2025, 01:06

The UK is bracing for “Liberation Day”, with Sir Keir Starmer reportedly putting together a last-minute package to avoid the worst effects of Donald Trump’s global tariffs.

Described as “one of the most important days in American history” by the White House, April 2 will see the United States levy tariffs of up to 25 per cent on countries across the globe.

Downing Street reportedly spent Tuesday attempting to agree a last-minute deal with Washington, but the Prime Minister now accepts this is not going to happen before Trump introduces his tariffs.

However, the Government has continued to work on the proposal, which is focused on future technologies and could include tax cuts for US tech giants.

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Sir Keir Starmer's government is also offering to reduce tariffs the UK currently imposes on US exports of beef, chicken and other meats, the Telegraph reports.

Speaking from the White House on Tuesday, White House press secretary Karoline Leavitt declared, “the days of the US being ripped off are over.”

"Our country has been one of the most open economies in the world, and we have... hands down, the best consumer base," she said.

"But too many foreign countries have their markets closed to our exports. This is fundamentally unfair.

"The lack of reciprocity contributes to our large and persistent annual trade deficit that's gutted our industries and hollowed out key workforces."

Trump is expected to give the exact details of what “Liberation Day” will bring in a press conference from the White House at around 9pm UK time on Wednesday.

Ahead of the expected tariffs on imported goods, the Chancellor is said to have engaged in talks with her US counterpart, Scott Bessent.

It comes as Downing Street suggested it is unfair to draw parallels between tariff negotiations and the invitation for Donald Trump to make a second state visit to the UK.

Asked whether the invitation could be withdrawn if there is no deal to prevent trade tariffs, the Prime Minister's official spokesman said: "I wouldn't draw any any link between the two.

"Obviously, the state visit is a matter for the Palace, as you know."

Downing Street added: "You'll have seen that the Prime Minister was delighted to extend His Majesty the King's invitation for a historic state visit during his visit to the White House."

"But when it comes to these talks, we'll obviously continue to have these conversations.

"We'll obviously continue them in the national interest, and we'll obviously provide an update as and when we have one."

No country in the world will be exempt from US tariffs, says Business Secretary

It comes as Foreign Secretary David Lammy said the UK must "prepare for the worst" over tariffs from the US as "intense conversations" continue on a possible economic agreement.

On Tuesday, Sir Keir Starmer suggested the UK was "working hard on an economic deal" but admitted: "the likelihood is there will be tariffs."

"Nobody welcomes that, nobody wants a trade war. But I have to act in the national interest and that means all options have to remain on the table."

However, the proposed tariffs hold the potential to wipe out Rachel Reeves's '£10 billion headroom', with the Chancellor warned it could severely impact the balancing of Britain's finances.

Liberal Democrat foreign affairs spokesman Calum Miller, who represents Bicester and Woodstock, told the Commons: "My constituents at the BMW Mini plant in Cowley are deeply concerned about the impact of Donald Trump's global tariff war.

"The uncertainty the plant faces is made much worse by the red tape that now inhibits integrated car production with suppliers in the EU.

"So does the Foreign Secretary agree that in addition to a robust response to the White House, the best step the Government can take to support British businesses would be to start talks on a bespoke UK-EU customs union without delay?"

Mr Lammy replied: "We are an open-trading nation. We have been that under successive governments. It's hugely important at this time that we continue the intense conversations we're having with the US administration on getting an economic agreement but of course we prepare for the worst - all options remain on the table, as the Prime Minister indicated again just yesterday.

"But it's also right that the Business Secretary and I and others across Government continue to engage with business and industry so we can give them the best support at what will be a turbulent economic time, not just for our own country but of course much of the world."