Sir Keir Starmer urges world leaders to reduce trade barriers between them to mitigate the impact of Donald Trump's rate war.
The prime minister started last night with a flurry of diplomatic calls that were designed to coordinate the reactions to the 'Liberation Day' announcement of President Trump about rates, which caused the market melissions around the world.
Last night the Prime Minister discussed the crisis by telephone with Italian Prime Minister Giorgia Meloni and the Australian leader Anthony Albanese.
Downing Street said: “They all agreed that a total trade war would be extremely harmful and in no one's interests,” adding to it: “It has long been clear that like -minded countries must retain strong relationships and dialogue to guarantee our mutual safety and maintain economic stability.”
Sir Keir is expected to continue the diplomatic push with calls to a series of European, Commonwealth and Golf Leaders at the weekend.
Sir Keir Starmer started a flurry of diplomatic calls designed to coordinate the reactions to the 'Liberation Day' announcement of President Trump at rates
The Australian leader Anthony Albanese received a phone call from the Premier about the market that melt all over the world
He will encourage them to postpone retribution to the American move with tit-by-for-tat rates, which economists warn the world in an even deeper trade war.
And he will suggest that they are working on lifting trade barriers to compensate for the impact of the US president's rate policy.
Whitehall -sources said that the prime minister was 'very interested' in the proposal that was driven yesterday by former minister and Goldman Sachs Chief Economist Jim O'Neill.
Lord O'Neill said that ministers were right to “follow politely discussions about a trade agreement with the US.”
But the independent pear said that the 'kamikaze approach' by the American president meant that leaders should also look to reform the world economy and “stop this addiction to the American consumer.”
He said that the economies of other G7 countries were about equivalent to the US, and suggested that other large powers such as China and India could be asked to work together.
Italian Prime Minister Giorgia Meloni agreed with Downing Street that 'a total trade war would be extremely harmful and in no one's interests'
He told BBC Radio Four's Today's Program: 'A very sensible thing to do would have a serious conversation with the other (G7) members about actually lowering trade barriers between ourselves.
“That would be very healthy for all those countries because it is the only area for global trade where most countries have not done enough.”
No 10 yesterday rejected Mr. Trump's claim that he is 'very happy' about the rates imposed on the UK, which are in the lowest tire of 10 percent – half that has levied on the EU. A spokesperson said that Sir Keir was 'disappointed' by the move.
A government source said Sir Keir would continue to follow a trade agreement with President Trump, but added: “He doesn't think we could just have a tactical answer.”
