After Donald Trump announced global tariffs last night, the UK government has listed products it could target in response. But the prime minister insists he’d much rather strike a deal with the US than escalate into a full-blown trade war.
Thursday 3 April 2025 17:25, UK
Please use Chrome browser for a more accessible video player
We don’t just trade with the US.
That’s the message from the deputy prime minister, who says a „global trading world“ is still out there despite Donald Trump’s onslaught of worldwide tariffs – including on Britain.
Labour ministers are keen to improve ties with countries in Europe and the Indo-Pacific, Angela Rayner said, with an „outward-looking“ trade policy.
Rayner said Labour’s policies would also help counter the impact of Trump’s protectionist trade stance, with boosts to defence spending, apprenticeships and house building, and green energy plans, making Britain less reliant on others.
Not for the first time, Donald Trump has cast a long shadow over the Politics Hub today.
Here are the main things you need to know:
Politics Hub With Sophy Ridge is live from 7pm.
As well as reaction to all things tariffs, we’ll also be speaking to the mother of one of the victims of the 2017 Manchester Arena attack, after her long campaign resulted in a new law being passed today.
In the meantime, you can follow more updates and analysis on Trump’s trade war via our dedicated live blog below:
Donald Trump has imposed immediate tariffs of 10% on all British exports to the US.
Niall Paterson talks to Sky’s business and economics correspondent Paul Kelso about what these tariffs might mean for British business, which sectors are exempt, and whether a further deal can be worked out.
There’s been lots of talk since Sir Keir Starmer’s trip to the White House earlier this year about a UK-US trade deal.
But for all the positive noises, one has not been forthcoming in time for Donald Trump unleashing tariffs upon pretty much the entire world – including 10% on imports from the UK.
Downing Street, though, remains hopeful.
„There are proposals on the table,“ said the PM’s spokesperson.
„Discussions are ongoing at multiple levels,“ they added, „and will continue over the coming weeks and days.“
The shadow chancellor and shadow home secretary are out and about in south London this afternoon talking to businesses about the economy, and they spoke to broadcasters during the visit.
They were both asked about Donald Trump’s decision to impose 10% tariffs on UK imports.
Shadow chancellor Mel Stride said: „I think it’s very unfortunate because I believe in free trade, we do as a party because it raises living standards all around the world. We’re going to see where this leads.“
He said the Tories will support the government where is „does the right thing and manages to move us towards a deal“, but says there’s „huge disappointment that it’s taken as long as it has“ to begin talks.
‚A pretty shocking lapse‘
The government argues they could not begin speaking with the new administration’s trade appointees until they were formally confirmed by the US Senate after January’s inauguration.
And of course, the Conservatives failed to agree a trade deal with the US during Trump’s first term in office from 2017 to 2021, and also did not secure one with the Biden administration.
Nonetheless, shadow home secretary Chris Philip said the government „should now urgently try to negotiate a tariff-free free trade agreement with the US“.
That the government didn’t „start doing that immediately“ after Trump’s election win „was a pretty shocking lapse“, he added.
Andrew Griffith, the shadow business secretary, spoke in the Commons earlier about the tariffs imposed by Donald Trump.
He’s whacked 10% tariffs on all British imports into the US.
The government argues the UK has got off relatively lightly, and it’s vindication for the prime minister’s approach of late.
But Griffith said it was „not that special“ at all, given there are dozens of other countries in the same 10% boat – from Costa Rica and Kosovo to the Christmas Islands.
He added people in Britain today face „greater fear and more uncertainty“ – and the tariffs „make us all poorer“.
But Griffith said „thousands of British jobs have been saved today“ thanks to the UK having left the EU, which Trump has stung with double the level of tariffs – 20%.
In the last half hour, the leaders of the Northern Ireland Executive have been giving their first reactions to Donald Trump’s announcement of global tariffs.
First minister Michelle O’Neil said: „We’re going to have to continue to work our way through this, as we see what unfolds. Our priority has to be to protect jobs, it has to be about growing our economy.“
The Sinn Fein vice president hit out at the UK government, saying: „It’s so much better if we have control of our own affairs.“
‚Race to the bottom‘
Deputy first minister Emma Little-Pengelly added: „Northern Ireland is absolutely open for business. We’ve got so much to offer.“
The DUP politician went on to say it was important Northern Ireland’s concerns were not just „at the centre of considerations“ for the UK government, but also the EU, when it comes to retaliatory tariffs.
Escalating retaliation risks „a race to the bottom“, she said, urging the government to keep having „constructive discussions“ with Trump.
‚It’s time to fight back together‘
O’Neill added everyone is „united“ in agreeing Trump’s actions cause „such instability, such uncertainty“ and are „a detriment to economies around the world“.
„It’s a time for everybody to work together in terms of fighting back.“
The expansion of Luton Airport has been approved by Transport Secretary Heidi Alexander.
She said she has approved the airport’s expansion plan, which is for a new terminal rather than runway, despite the Planning Inspectorate recommending she reject it over environmental concerns.
The chancellor had been considering whether to expand the airport as a means to boost UK growth, following a similar decision to give the green light to a third runway at Heathrow at the beginning of the year.
It comes after Ms Alexander announced last month that she would support Gatwick Airport’s second runway plan if the project was adjusted.
Ms Alexander has previously said the UK „can and must“ boost aviation at the same time as protecting the environment, denying that the two are fundamentally incompatible.
Earlier today, Business Secretary Jonathan Reynolds confirmed the UK is considering retaliatory tariffs on the US.
The first step they have taken is putting out a consultation to see what the impacts of any such action would be.
Any retaliatory tariffs would be a „last resort“, according to the government.
A full list of potential areas for tariffs has now been published, and it is anything but succinct.
It runs to more than 400 pages, with more than 8,000 potential categories of goods – including whiskey and jeans.
You can see the full list here and find out more about how to contribute to the consultation here.
The consultation will close on 1 May.
Our political editor Beth Rigby asks the prime minister to explain to working people what Donald Trump’s tariffs mean for them.
Does it mean job losses, higher prices, and maybe higher taxes?
Sir Keir Starmer tells concerned people and businesses „we’re working in your absolute best interests“.
„A trade war is bad for working people and businesses,“ he says, and insists some sort of deal with the US is a better outcome.
But he warns „this is not just a short-term tactical exercise“ from Trump.
„It’s the beginning of a new era,“ he says, and people „have to understand the changing world when it comes to trade and the economy“.
„We have to adapt in ways that go beyond the mere question of tariffs,“ Starmer adds, to make Britain’s economy more secure.
Be the first to get Breaking News
Install the Sky News app for free
Politics latest: Starmer warns Trump has launched 'a new era' for global trade – Sky News
