The Prime Minister said he is ready to use industrial policy to “evacuate British businesses from the storm” expected from the tariff wave of US President Donald Trump.
Written by Sunday Telegraph, Kielstama said he would continue to seek trade agreements with the US to avoid tariffs, but he discussed state intervention to protect national interests.
“Some people may find it uncomfortable about this. The idea that states should intervene directly to shape the market is often riddled,” he said. “But when the world is changing this quickly, we simply can’t stick to old emotions.”
The UK was one of the countries that hit a hit with a 10% “baseline” import duties this week.
In addition to the 10% tariff, a 25% tariff is imposed on UK automobile exports, as well as steel and aluminum products. Many countries will have far higher tariffs of up to 50% from April 9th.
Trump says his intervention is aimed at encouraging US consumers to buy more American products and boost the domestic economy.
However, the announcement and retaliatory tariffs from countries such as China have led to stocks falling more than 5% amid fears of a global recession.
Jaguar Land Rover announced on Saturday it would “suspend” all shipments to the US to function to “measure the new terms and conditions.”
Ir Kiel wrote: “This week we will turbocharge plans to improve our domestic competitiveness, so we are not exposed to much of these types of global shocks.
“We are ready to use industrial policy to protect UK businesses from the storm.”
The Prime Minister admitted that some people find it “unpleasant” with the government intervention in the economy, but Britain said “cannot stick to old feelings when the world is changing this quickly.”
He has not ruled out further tax increases in the fall, but noted that the government resisted doing so in a spring statement.
The industrial strategy promised in the workers’ election manifesto is expected to be announced this summer. That element can adapt and move forward to helping UK businesses.
In the Telegraph, Ir Kiel repeated his position of “satisfiing the government and fighting for the best deal,” but said, “all options remain on the table.”
He added: “We only do business if it is suitable for UK business and workers’ security.”
Conservative leader Kemi Badenok has urged the Prime Minister to launch a “deeply meaningful trade agreement” with the United States, “providing growth without compromising standards.”
Last year, the UK exported mainly machinery, automobiles, pharmaceuticals and goods worth £600 billion to the US.
On Wednesday, the government published a 400-page list of US products that can be included in any customs response. Business Secretary Jonathan Reynolds told MPS that the government will consult with businesses about how retaliatory tariffs will affect them.
This list covers 27% of US imports. This was chosen because it would have a “more limited impact” on the UK economy, the Ministry of Business and Trade said.
IR Kiel said it also wanted to reduce trade barriers with other economies to limit the impact of US tariffs on UK exports.
Over the weekend, the Prime Minister spoke to several world leaders to discuss how to deal with US tariffs.
In a call Saturday with French President Emmanuel Macron, the pair agreed that the trade war “is not in anyone’s interest” but “should not go off the table.”
But both the Conservatives and Liberal Democrats say that UK families and businesses will first feel the impact of the hike of national insurance for employers in effect today.
