Sir Keir Starmer warned Donald Trump today that Great -Britain could still raise the American rates.
The Prime Minister said that the UK is the right to respond to American trade taxes, after the US president had beaten an import tax of 25 percent on cars.
But Sir Keir added that the government continued hectic discussions with the White House aimed at 'Magging the impact' of Mr Trump's action.
Also the rates for all cars imported into America, the American president also views a series of other 'retaliation measures' to come into force next Wednesday.
Mr. Trump has called this 'Liberation Day' and a large number of other rates are expected.
This can include a general levy of 20 percent on British products in response to VAT.
Labor has said that they will follow a pragmatic approach to the threat of rates by strengthening the transatlantic trade tires and following a broader economic deal in the UK.
In contrast to the EU response, this is where Brussels prepares a series of retailiative measures against the US.
Sir Keir Starmer warned Donald Trump today that Great -Britain could still raise the American rates.
The Prime Minister said that the UK is the right to respond to American trade taxes, after the US president had beaten an import tax of 25 percent on cars.
Also the rates for all cars imported into America, the American president also views a series of other 'retaliation measures' to come into force next Wednesday.
During a visit to Yorkshire on Friday, Sir Keir was asked whether the British reserves for the right to respond to American rates.
“Yes, of course,” the prime minister replied. 'It is clear that all rates are worrying and we work hard with the industries and sectors that are probably affected.
'None of them wants to see a trade war, which is why we are discussing discussions with the US about reducing the impact of rates.
“Now, that is what we are working hard on, but as an answer to your question, yes – our national interest must first come first, which means that all options are on the table.”
About 16.9 percent of the British car export went to the US last year, with a total of more than 101,000 units worth £ 7.6 billion.
Minister of Industry Sarah Jones held a virtual meeting with leaders of the car industry to discuss rates on Friday.
A government spokesperson said that the minister listened to the views of those present about the trade with the US, and they expressed their support for the tackling of the government.
They added that the US is an 'indispensable ally and one of our closest trading partners, with £ 1.2 trillion invested in each other's economies'.
Mike Hawes, Chief Executive of Industrie Instance The Society of Motor Manufacturers and Traders, said that the announcement of rates 'was not surprising, but still disappointing' and he urged both governments to close a deal that avoids further damage.
In the latest assessment of the British economy, the Office for Budget Responsibility warned a full rate war with the US that can wipe 1 percent of GDP next year.
This would derail the hope of Chancellor Rachel Reeves to balance the books and force her to implement more cuts or tax increases.
That 'Worst-Case Scenario' would come about if Mr. Trump would impose 20 percent rates on British goods and answered the UK in kind, the watchdog said.
Tory Member of Parliament Andrew Griffith, the Shadow Trade Secretary, said: “This shows the costs of wasting work by trying to bring us back to the EU instead of taking the American trade agreement we started.
'After the emergency budget has shown growth, inflation and employment, everything in the wrong direction, Labor needs a good plan to get the British economy back on the right track.
“An American trade agreement can be the answer. But with the threat of rates that arise about British jobs, work has to do more to secure it. '
Liberal -Democrat Parliament member Daisy Cooper, the spokeswoman for the Treasury of her party, called on the UK to be ready to hit back to American rates.
She said: 'Our car industry is left to the grace of Trump and his destructive trade war.
“We must prepare to respond if necessary, including via Tesla rates that Trump's Cony Elon Musk met in the bag.”
