Simon Jack
Editor
EPA
Prime Minister Sir Keir Starmer said on Sunday that he was ready to use industrial policy to “shelter British storm affairs” expected from the recent wave of prices from US President Donald Trump.
A price of 10% “basic” on all imports in the United States and a 25% rate on car imports have now entered into force.
But what do the Prime Minister’s words mean in practice?
The BBC understands that there are several options on the table.
Cars
In 2024, the largest export of goods from the United Kingdom to the United States was cars and car parts, with a value of around 9 billion pounds sterling.
This industry was struck by a 25% rate which entered into force on Thursday.
This occurs while industry has trouble achieving growing requirements on the number of sales to be electric from year to year.
Sir Keir is expected to announce a relaxation of these objectives on Monday during a speech in the West Midlands. It is provided that if a general ban on 2030 of the sale of cars powered by petrol and diesel will not be moved, a certain flexibility will be granted to annual requirements until this date. There may also be an additional time for manufacturers of commercial petrol and diesel vans to conform.
The BBC understands that there can also be additional flexibility for luxury car manufacturers of smaller volume like Aston Martin and Rolls-Royce.
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Anti -dumping guarantees
The fear is that goods intended in the United States are now diverted to other markets, including the United Kingdom, due to the fact that the American prices in certain countries are mainly exceeding 10% placed on British goods.
In the past, the United Kingdom and the European Union (EU) have introduced so-called backups that allow a certain amount of foreign steel on their market-and if they are exceeded, prices have been applied. These guarantees have been reduced over time and should be reset or hardened more.
The steel example is considered to be a plan of the government which could be copied by other industries to avoid a huge influx of goods that could reduce consumer prices, but undervalue national American suppliers at a critical time.
The Department of Affairs and Commerce is in active discussion with the relevant regulatory organization – Trade Remedies Authority, which monitors unfair threats to British industry.
New investment
It is planned that a series of advertisements on government investment in British industry and the infrastructure planned for later this year will be presented in the coming days and weeks.
This would be to reflect the urgency and sensitivity of the situation encountered by British industry.
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Closer links with other nations
While the United Kingdom is trying to conclude better agreement with the United States, government representatives will continue with agreements to obtain better mutual access to even harder countries by new prices, which could be more encouraged to conclude an agreement.
The BBC understands that India – which has been struck by a tariff of 26% – is a particular target.
Commercial transactions are diabolically complicated, require complex complexes and generally take years to finalize.
The feeling of emergency after the government called an “economic shock” means that these deadlines have suddenly been shortened.
