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Sir Keir Starmer has discussed “concerns” about tariffs with Emmanuel Macron, as Jaguar Land Rover said it will “pause” shipments to the US while it looks to “address the new trading terms” of Donald Trump’s rules.
The Prime Minister and French president talked about their “concerns about the global economic and security impact” of the new taxes, “particularly in South-East Asia” in a call on Saturday.
Meanwhile, the announcement from JLR earlier on Saturday came as companies are grappling with the new trade rules, and the fallout on the global stock markets. The firm has said it is looking to “develop” its longer term plans.
A 10% tariff on goods imported into America from around the world kicked in on Saturday morning, while a 25% levy on foreign car imports came into force on Thursday.
Sir Keir’s conversation with Mr Macron was the latest in a series of calls with world leaders following Mr Trump’s announcement on Wednesday.
Issuing a readout of the call, a Downing Street spokesperson said: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.
“The Prime Minister and president also shared their concerns about the global economic and security impact, particularly in South-East Asia.”
Trading across the world has been hammered in the aftermath of the president’s tariff announcement. While the UK is set to continue at the 10% baseline, other nations are due to see their tariff rates increase further next week.
Some of the highest tariff rates have been applied to nations in South-East Asia, with imports from Vietnam will be subject to a 46% tariff, while those from Cambodia will face a 49% rate.
Imports from France will see a 20% tariff, the rate that has been set for EU nations.
JLR said on Saturday that the USA is an “important market for JLR’s luxury brands”.
A spokesperson added: “As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”
The FTSE 100 plummeted on Friday in its worst day of trading since the start of the pandemic, while markets on Wall Street also tumbled.
London’s top stock market index shed 419.75 points, or 4.95%, to close at 8,054.98 on Friday, the biggest single-day decline since March 2020 when the index lost more than 600 points in one day. The Dow Jones fell 5.5% on Friday as China matched Mr Trump’s tariff rate.
Mr Trump has warned Americans that the tariffs “won’t be easy”, but urged them to “hang tough”.