Keir Starmer has been advised to lean into Brexit freedoms to survive Trump's trade war (Image: Getty)
Prime Minister Keir Starmer has been advised to lean into Brexit and transform Britain into "Singapore-on-Thames" in response to the global trade war launched by Donald Trump. Sir Keir acknowledged that the world was "entering a new era" after the US slapped tariffs on imports from around the world, including a 10% tax on British goods. Now former Conservative Chancellor Jeremy Hunt has urged him to use the unprecedented shift in global relations to double down on Brexit freedoms, including independent trade policies to prevent the country from dipping into a recession.
Mr Hunt touted Singapore as a model for these changes during the lead-up to the Brexit referendum - classing it a realised ideal of a low taxation small state free from the shackles of European regulation. The slew of tariffs imposed on US imports by Mr Trump this week have spurred the MP to reiterate his calls for economic reform based on the southeast Asian city-state and warn the Prime Minister against surrendering to "the siren song of protectionism".
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Jeremy Hunt is a vocal supporter of the "Singapore-on-Thames" economic model (Image: Getty)
Despite indicating that he will pursue a trade deal with America before responding with retaliatory tariffs, Sir Keir has warned that "nothing is off the table", including hitting the US with higher import duties that Mr Hunt said could wreak havoc on the UK economy.
Instead, he extolled the virtues of the "Singapore-on-Thames" model, suggesting that putting fewer barriers in the way of imported goods would have a positive impact on UK business, manufacturing and innovation in the long run.
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"Over the last century, Singapore's living standards have grown five times faster than ours," Mr Hunt wrote in The Telegraph. "Those who deride the idea of 'Singapore-on-Thames' fail to understand that the heart of their success has not been a harder-edged social policy but the building up of internationally competitive business through willingness to trade."
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"But Singapore didn't invent free trade," he added. "That honour belongs to Britain. Even if others turn their backs on it, we should remember the benefits of one of our greatest gifts to the world."
The US announced tariffs on countries around the world on Wednesday, sending global financial markets into turmoil.
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While the UK escaped with a relatively low rate of 10% - dubbed a "Brexit dividend" in contrast to the 20% levy imposed on countries in the European Union - the Prime Minister said British exporters would be hurt by the new taxation.
The FTSE 100 tumbled to a three-month low on Thursday and the US Dow Jones index recorded its worst day since 2020, falling by almost 4%. Experts have also warned that UK economy growth, previously estimated to be up 1% this year, could drop by up to 0.5% points as a result of the tariffs.
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The Government will hold a four-week consultation before taking any retaliatory action - but Singapore has already confirmed that it won't be responding to its own 10% levy with tit-for-tat measures.
Gan Kim Yong, Deputy Prime Minister of the city-state, said he was "disappointed" by the tax but added that "retaliatory import duties will just add cost to our imports".
The sweeping measures also include a 34% levy on goods from China on top of an earlier 20% tariff, as well as a 24% tariff on Japan and 25% on South Korea. Mr Trump leader said the import taxes will compensate for US taxpayers being "ripped off for more than 50 years" and entice factories and jobs back to America.