Downing Street has distanced itself from comments made by the foreign secretary, who told reporters on Friday that he regrets “the return of protectionism in the United States.”
David Lammy said that Britain is “a nation that believes in open trade” and that these curbs on trade are “something we’ve not seen for nearly a century.”
“We have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare,” he added.
Now, Number 10 has rejected suggestions that the ‘Liberation Day’ package of tariffs on 2 April represents a return to “protectionism.”
A spokesperson said: “You have the foreign secretary’s words, and you have the prime minister’s words from yesterday.
“This is not a short-term tactical exercise, it’s the beginning of a new era… we have to understand the changing world when it comes to trade and the economy.”
The Number 10 spokesperson added: “No, I wouldn’t characterise it in any particular way apart from the fact that the global economic landscape is shifting, and we need to shift with it.”
Speaking after the Trump tariffs had rocked global markets throughout Thursday, Starmer took the more neutral position that the rewriting of a near-century of trade consensus represented a “new era” that would “clearly” impact the UK economy.
On Friday afternoon, the Chancellor Rachel Reeves said: “Of course, we don’t want to see tariffs on UK exports.”
“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.”
The Chancellor is reckoning with the risk that the trade levies – even at their minimum level of 10 per cent – could shave away vital fiscal headroom.
Global aftershocks
The FTSE 100 hit a three-month low on Friday as panic gripped global financial markets.
In one of the most aggressive counter-measures yet, China announced a 34 per cent retaliatory tariff on US goods.
Trump hit back, saying that “China played it wrong, they panicked.” He added that this is “the one thing they cannot afford to do!”
As US markets opened, the S&P 500 and Dow Jones had both taken further tumbles – down 3 per cent and 2.5 per cent respectively.
Meanwhile, Vice President JD Vance is now set to meet Italian PM Giorgia Meloni before Easter, opening the door for Meloni to carve out more favourable trading terms for Italy – which, currently, is caught up in an EU-wide catch-all 20 per cent levy.
