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Nigel Farage urged Sir Keir Starmer to scrap net zero and strike a US trade deal in the wake of Donald Trump's tariffs The Prime Minister today confirmed a raft of new reforms aimed at boosting British manufacturers.
In a speech at a Jaguar Land Rover plant in the West Midlands, Sir Keir said the UK had to "rise together as a nation" in the face of a new era of global instability.
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But Reform UK leader Mr Farage said: “If Starmer really wants to save British manufacturing he’d scrap net zero and strike a trade deal with the US.
“Ultimately all UK manufacturers are being hammered by the highest energy costs in the world. Instead of tinkering around the edges, it’s time to scrap net zero, scrap the subsidies and reindustrialise the UK.”
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yesterday18:08 Katie Harris
Tories say Starmer speech is 'thin gruel'
Conservative shadow business and trade secretary Andrew Griffith said: "This speech is thin gruel for families and businesses who are being punished with higher costs, more expensive cars and higher bills thanks to this Labour government’s mad rush to net zero.
"As Kemi said: Net zero by 2050 is impossible. It will cripple business and saddle families with higher and higher bills.
"Labour need to do more than just tinker at the edges. Until they do, families will continue to pay through the nose for this fantasy politics. It won't save the planet but it will cost the earth."
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2 days ago16:21 Katie Harris
Badenoch urges Starmer to push for US trade deal
Kemi Badenoch has said Sir Keir Starmer is "not doing very much yet" in response to US tariffs.
The Tory leader said: "Well in terms of the tariffs, he's not doing very much yet.
"What we want to see is a trade deal that helps lower the tariffs.
"He has made an announcement today about reducing the targets for the zero electric vehicles mandate. That's something he should have done a long time ago."
2 days ago15:29 Katie Harris
Farage demand Starmer axes net zero
Reform UK leader Nigel Farage said: “If Starmer really wants to save British manufacturing he’d scrap net zero and strike a trade deal with the US.
“Ultimately all UK manufacturers are being hammered by the highest energy costs in the world.
“Instead of tinkering around the edges, it’s time to scrap net zero, scrap the subsidies and reindustrialise the UK.”
2 days ago14:55 Katie Harris
'This is a changing and completely new world'
Sir Keir Starmer said tariffs are a "huge challenge" and that we are in a "completely new world".
The Prime Minister said: "But this moment has also made something very clear - that this is not a passing phase.
"Just as we have seen with our national security and defence, particularly over recent months in relation to the war in Ukraine, now with our commerce and trade, this is a changing and completely new world."
He added: "Let me be really clear, at a moment like this, our future is in our hands, and so of course, we will keep calm and fight for the best deal with the US, and we've been discussing that intensely over the last few days.
"But we are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe."
Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer (Image: Getty)
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2 days ago14:53 Katie Harris
Starmer warns of 'challenging times'
Sir Keir Starmer said the UK had to "rise together as a nation" in response to global instability amid Donald Trump's tariffs.
Speaking at a Jaguar Land Rover plant in the West Midlands, the Prime Minister said: "These are challenging times, but we have chosen to come here because we are going to back you to the hilt."
He said the visit was a "statement of intent", showing the Government's support.
Sir Keir added: This is a moment for cool heads, nobody wins from a trade war, you know that.
"But it's also a moment for urgency, because we've got to rise together as a nation to the great challenge of our age - and it is the great challenge - which is to renew Britain so we're secure in this era of global instability."
2 days ago14:49 Katie Harris
Value of US stocks falls
The value of US stocks has dropped sharply, minutes after markets opened in Wall Street today.
The S&P 500 index, which tracks the country's leading listed companies, was tumbling by about 200 points, or 4%, shortly after opening.
The Dow Jones index was down about 3.7%, and Nasdaq fell around 4.4%.
Analysts had been expecting the indexes to suffer another day of steep losses amid the global market turmoil sparked by Donald Trump's tariffs, and as the sell-off deepened in European and UK markets.
2 days ago14:38 Katie Harris
Starmer now up
Prime Minister Sir Keir Starmer has just kicked off his speech.
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2 days ago14:33 Katie Harris
Reeves speaks ahead of PM
Chancellor Rachel Reeves is speaking at a Jaguar Land Rover plant in the West Midlands before Prime Minister Sir Keir Starmer makes his address.
The Chancellor and PM are speaking at a Jaguar Land Rover plant in the West Midlands (Image: Getty)
2 days ago12:14 Steph Spyro
Trump and Starmer did not speak over weekend, No10 says
Sir Keir Starmer did not speak to Donald Trump over the weekend, No 10 has said.
The Prime Minister’s official spokesman said he did not have any update on calls with the US president, and pointed to calls Sir Keir had held instead with leaders including those from Canada, Germany, France and the European Commission over the weekend.
Asked if Sir Keir was trying to persuade Canada and the EU not to retaliate over the US tariffs, the spokesman said it is “up to every country to respond in the way they see fit”.
The last few days have not “fundamentally changed the calculation” when it comes to the Government’s ambitions on an EU reset and a close trading relationship with the bloc, he added.
2 days ago11:26 Michael Knowles
Farage breaks silence on Trump tariffs
Reform UK leader Nigel Farage said retaliatory tariffs would be "absolutely counter productive in every way".
Speaking to reporters in Doncaster, Mr Farage said: "This is the moment to recognise that, as an independent nation with its own trade policy, we can actually benefit out of this. Certainly in the way the European Union can't. That positioning is right.
"Where I disagree fundamentally with the Prime Minister is that he's making a big speech today about the state of the car industry. It is nothing to do with the tariffs that last year was our lowest level of car production since 1954.
"The EV mandates that were put on by the last Conservative government have been destroying the car industry and all the Prime Minister is doing this afternoon, frankly, is fiddling around the edges. Even without America and tariffs our car industry is in crisis."
Mr Farage said he believed Donald Trump's global tariff policy is part of a wider negotiation strategy by the US president.
He said: "I still think that this big tariff threat globally ... It'll look different in three months time. He'll use it as a big negotiating tool. I think we're better positioned to come out of this with a deal than almost any other country.
"So, short term it's painful, but what it does do, it exposes the fact that not being in the European Union does have advantages and ones that we ought to use."
Read the full story here.
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2 days ago10:57 Michael Knowles
Notch up threats of retaliation
The UK should ramp up threats of retaliation towards Donald Trump's trade tariffs, a former UK ambassador to the US has warned. Sir Nigel Sheinwald told Sky News: “I think it's right that we should say we're going to think about retaliation. We might indeed have said that a little bit earlier on.
“I think it's always wrong to take that off the table or sound as if you don't mean it, because in the world of trade policy and trade negotiators, this is a tough world where you've got to brandish those weapons and seem as though you're prepared to use them.
“I think the tempo and the tone need to be notched up somewhat”, he added.
2 days ago10:32 Michael Knowles
UK fiscal rules are 'non-negotiable'
Rachel Reeves’s fiscal rules are “non-negotiable” as turmoil gripped financial markets around the world.
The Chancellor’s self-imposed rules mean she cannot borrow to fund day-to-day spending and debt has to be falling as a share of the UK’s income by the end of the five-year forecast.
2 days ago10:16 Michael Knowles
Government borrowing costs fall
Government borrowing costs have fallen to the lowest level since Rachel Reeves’s October Budget as investors dumped stocks and piled into the bond market.
The yield on two-year UK gilts - a benchmark for the cost of servicing sovereign debt - sank more than 10 basis points to 3.81pc, its lowest level since September.
(Image: Getty)
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2 days ago10:07 Michael Knowles
US Ambassador to raise concerns in the White House
Lord Mandelson will raise Donald Trump's trade tariffs in the White House later this week.
A Whitehall official told the Telegraph British diplomats in US were “watching market movements carefully” and have been in touch with “a lot of very concerned British businesses”.
The source added that “major UK businesses with operations in the US - who would like to invest more - are seeking greater clarity on the administration’s path forward”.
Lord Mandelson “will be explaining this to the administration in the week ahead,” they said.
2 days ago09:58 Michael Knowles
Not the time to discuss Trump's state visit
The Transport Secretary did not say whether it is time to rescind the offer of a state visit to Donald Trump and said Sir Keir Starmer will be "honest" in conversations with allies about the "knock-on impact" of tariffs.
Asked whether the Government should tell the US President to forget the visit, Heidi Alexander told BBC Radio 4's Today programme: "So, standing up for British industry is about finding solutions, and, as I have said, a constantly escalating trade war is in nobody's best interest, and I know that the Prime Minister has been speaking to (Premier) Mark Carney in Canada, President (Emmanuel) Macron from France, over the last couple of days to ensure that we have those conversations with our international partners to make sure that we navigate this situation as well as we can.
"And it's part of the reason why today I am announcing those changes to the zero-emission vehicles mandate, which provides certainty to the car industry, British manufacturers."
Asked whether Sir Keir will urge Mr Trump to change course, Ms Alexander said the Prime Minister "has discussions internationally with allies, (and) he will be honest about what is both in the best interests of the British people, and actually the sort of global impacts of the global tariffs will have a knock-on impact upon our economy".
(Image: Getty)
2 days ago09:52 Michael Knowles
UK: 'Constantly escalating trade' war bad for global demand
Sir Keir Starmer has "built a relationship" with Donald Trump and will be "honest" with the UK's allies about the impacts of tariffs on the national and global economy, the Transport Secretary has said.
Speaking on BBC Radio 4's Today programme, Heidi Alexander said: "So you're right to say that the Prime Minister has built a relationship with President Trump.
"I think that has been obvious over the last couple of months.
"We're clear that, actually, a constantly escalating trade war where tariffs are ratcheted up is bad for global demand.
"It's bad for prices, which means it's bad for British consumers and so, obviously, when the Prime Minister has discussions internationally with allies, he will be honest about both what is in the best interests of the British people, and actually the sort of global impacts of the global tariffs will have a knock-on impact upon our economy."
Sir Keir has been speaking with Canadian Prime Minister Mark Carney and French President Emmanuel Macron over the last few days regarding how best to "navigate" the current economic climate, she added.
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2 days ago09:46 Steph Spyro
Cabinet Minister refuses to comment on axing Trump's second state visit
Transport Secretary Heidi Alexander did not say whether it is time to rescind the offer of a state visit to Donald Trump and said Sir Keir Starmer will be “honest” in conversations with allies about the “knock-on impact” of tariffs.
2 days ago09:39 Steph Spyro
FTSE 100 has plunged to a one-year low
The UK’s FTSE 100 has plunged to a one-year low as fears deepen over the global impact of Donald Trump’s tariffs, despite Sir Keir Starmer promising new measures to support under-pressure manufacturers.
Analysts have warned that the scale of disruption in global financial markets is one of the worst to be felt in decades.
The index, which tracks the country’s top 100 listed firms, dropped by about 5% in early trading on Monday as a sharp sell-off kicked in shortly after markets opened.
The panicked mood was felt across Europe, with Germany’s Dax index recording a drop of about 6.5%, and France’s Cac 40 down around 5.3% in the morning.
Donald Trump (Image: Getty)
2 days ago09:32 Jonathan Walker
China-US trade war heats up
China has accused the US of unilateralism, protectionism and economic bullying over tariffs.
Foreign affairs spokesman Lin Jian told reporters: “Putting the US first over international rules is a typical act of unilateralism, protectionism and economic bullying.”
US President Donald Trump announced sweeping tariffs last week, prompting China and other governments to retaliate quickly.
Mr Trump put an additional 34% tariff on Chinese goods as part of “Liberation Day”, coming on top of two rounds of 10% tariffs already declared in February and March, which the US leader said was due to Beijing’s role in the fentanyl crisis.
In response, China suspended sorghum, poultry and bonemeal imports from some American companies.
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2 days ago09:23 Jonathan Walker
UK shares down to one-year low
The UK’s FTSE 100 has plunged to a one-year low as fears deepen over the global impact of Donald Trump’s tariffs, despite Sir Keir Starmer promising new measures to support under-pressure manufacturers.
Analysts have warned that the scale of disruption in global financial markets is one of the worst to be felt in decades.
The index, which tracks the country’s top 100 listed firms, dropped by about 5% in early trading on Monday as a sharp sell-off kicked in shortly after markets opened.
The panicked mood was felt across Europe, with Germany’s Dax index recording a drop of about 6.5%, and France’s Cac 40 down around 5.3% in the morning.
2 days ago09:09 Jonathan Walker
Trump could impose second tariff on the UK
Donald Trump could impose a double the tax rate on the American arms of UK companies in a ramping up of his global trade war.
His US administration is reportedly planning to invoke a 91-year-old rule that gives the president the authority to raise taxes on foreign companies if their home nation imposes levies that are deemed to unfairly target US businesses.
Read the full story here
2 days ago09:01 Jonathan Walker
Donald Trump says 'I won't back down'
President Donald Trump said he will not back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the US.
The president dug in on his plans to implement the taxes, which have sent financial markets reeling, raised fears of a recession and upended the global trading system.
Speaking to reporters aboard Air Force One, Mr Trump said he did not want global markets to fall, but also that he was not concerned about the massive sell-off either, adding: “Sometimes you have to take medicine to fix something.”
His comments came as global financial markets appeared on track to continue sharp declines once trading resumes on Monday and after his aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.
“I spoke to a lot of leaders, European, Asian, from all over the world,” Mr Trump said. “They’re dying to make a deal. And I said, we’re not going to have deficits with your country. We’re not going to do that because to me, a deficit is a loss. We’re going to have surpluses or, at worst, going to be breaking even.”
The higher rates are set to be collected from Wednesday, ushering in a new era of economic uncertainty with no clear end in sight.
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2 days ago08:54 Jonathan Walker
The world is getting poorer
Stock markets plunged overnight in Asia and investors are braced for further sharp falls in New York as the fallout from US President Donald Trump’s tariff announcement enters its second week.
This will hit almost anyone who saves into a pension. That includes most working people even if they are young, as a portion of their salary will be going into a pension fund.
Asian stocks across the board were sinking to new lows after Mr Trump said he will not back down on his sweeping import taxes unless countries even out their trade with the US.
In Japan, the Nikkei 225 index, which tracks the country’s top 225 listed companies, was plummeting by about 6.5% on Monday morning.
The index was close to dropping below its lowest level since August last year.
China’s Shanghai Composite, which tracks the movement of shares on the country’s main stock exchange, had dropped more than 8%, while Hong Kong’s Hang Seng index was plunging by more than 12%.
The latest turmoil comes after the UK’s top stock index, the FTSE 100, on Friday suffered its biggest single-day decline since the start of the Covid-19 pandemic.
And global financial markets were on track for another day of steep losses.
The US’s S&P 500 and Dow Jones are both expected to open lower on Monday after a two-day sell-off which saw billions of dollars estimated to have been wiped off the indexes.
2 days ago08:53 Jonathan Walker
Stock markets plummet
London’s FTSE 100 stock market index dropped sharply on opening this morning, falling 241.88 points, or 3%, in the first few minutes of trading after US President Donald Trump said he will not back down on his tariffs on imports.
2 days ago08:52 Jonathan Walker
Starmer plans major speech today
The Prime Minister is set to make a major speech today about the state of the economy and help for business, following Donald Trump's tariffs. More details as we get them.
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2 days ago08:51 Jonathan Walker
It's urgent, says Minister
Donald Trump’s imposition of global tariffs means the UK Government has had to look at its electric vehicle plans with “renewed urgency”, the Transport Secretary said.
Asked to what extent the package of changes announced on Monday has been influenced by the US president’s trade policy, Heidi Alexander told LBC: “So, the consultation on the zero-emission vehicles mandate started on Christmas Eve, and it closed in the middle of February, and so we were always planning to bring forward our response in April as a Government.
“Obviously what happened last week with the imposition of global tariffs by the US administration has meant that we have looked at this with renewed urgency in the last week, because, if you think about businesses like Jaguar Land Rover, their business planning has really been thrown up into the air given the amount of cars they export to the US.
“Because the car manufacturers have been saying to us ‘We need certainty on this’, it’s really important that we come forward with a sensible package urgently, which is what we are doing today, so that we can take that part of uncertainty away from their planning because we recognise it is a challenging time for a lot of businesses at the moment.”
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2 days ago08:48 Jonathan Walker
Help for carmakers top of the list
The Government is speeding up measures that were previously due to be announced later in the year, as part of Labour's industrial strategy.
The first one will be changes to the ban on the sale of new petrol and diesel cars.
British carmakers will no longer need to reduce the sale of petrol and diesel cars as much as previously planned over the next few years.
However a proposed total ban on the sale of new petrol cars will still come into force in 2030.
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