UK Prepares New Industrial Strategy as US Tariffs Take Effect
The UK government is preparing a new strategy to protect British industries after the US imposed tariffs. Prime Minister Keir Starmer is expected to respond by recognizing a shift in global economics. He will outline how the UK must adjust to support its workers and businesses.
Reports suggest Starmer doesn’t agree with the use of tariffs. However, he acknowledges that many Americans support President Donald Trump’s move. Trump recently announced a 10% tariff on UK goods entering the United States. This is part of his broader economic policy to protect domestic production.
A Shift Away from Globalization
In a speech scheduled for Monday, Starmer is likely to acknowledge that the global model of free trade and open borders has not worked for everyone. He is expected to state that the era of globalization is effectively over. Additionally, he will emphasize that the country needs to build a new economic path that works for all communities.
Downing Street officials have already hinted at this change in thinking. Speaking with The Times, one spokesperson said, “Trump has done something that we don’t agree with. However, there’s a reason why people are behind him on this. The world has changed, globalization is over, and we are now in a new era.”
These remarks suggest that the Labour government is ready to adjust its approach to international trade and economic growth. They are moving away from the long-standing belief that global free trade always benefits everyone.
New Industrial Strategy on the Way
In response to the changing trade landscape, Starmer and Chancellor Rachel Reeves are working on a new economic plan. This includes:
- Relaxing regulations for electric vehicle manufacturers
- Introducing reforms to speed up domestic supply chains
- Announcing pro-growth data later this week
- Outlining an updated industrial strategy aimed at revitalizing UK industry
Starmer wants to present his administration as proactive and ready to meet modern challenges. By openly addressing public frustrations with globalization and trade, he hopes to show that his government is paying attention—and ready to act.
A senior Labour official added, “We’ve got to demonstrate that our approach, a more active Labour government, a more reformist government, can provide the answers for people in every part of this country.”
Although Starmer has yet to speak directly with President Trump about the tariffs, his speech is expected to mark a turning point in how the UK responds to trade disruptions and prepares for a different global economic future.