The UK government is rethinking its economic policy in response to Donald Trump’s tariff blitz, which has sparked a global trade war. Prime Minister Keir Starmer may consider raising taxes or changing fiscal rules to stimulate economic growth.
The US tariffs have already had a significant impact, with nearly $5tn wiped off global stock markets and the FTSE 100 closing over 7% lower. The UK’s luxury carmaker Jaguar Land Rover has paused shipments to the US, citing the need to address new trading terms. Starmer is expected to focus on protecting working people and public services amidst the economic shock.