What can Keir Starmer do in a world buffeted by Donald Trump?
The economic outlook in the UK is becoming increasingly uncertain, as the cost of living continues to rise and fears of a recession loom. Recent polling conducted for More In Common reveals that two-thirds of UK residents are concerned about the impact of America’s tariffs, with over half worried about the implications for their cost of living.
In response to these concerns, there is growing support for the UK government to retaliate with its own tariffs on America. However, the government has been hesitant to take this step, while keeping the option open for future consideration.
Prime Minister Boris Johnson has acknowledged that the world has undergone fundamental changes, prompting questions about whether his government is willing to adapt its policies accordingly. Despite promises not to increase income tax, VAT, or National Insurance for employees, there are uncertainties surrounding government borrowing and fiscal rules.
As the government grapples with how to navigate the current economic challenges, ministers are expediting announcements that were originally planned for the Industrial Strategy, such as the phasing out of petrol and diesel cars. Negotiations with the US for a free trade deal are intensifying, but there is a sense of unpredictability surrounding President Trump’s next moves.
Amidst this uncertainty, there is a renewed focus on securing trade deals, particularly with countries like India. The government is facing a turbulent moment, with the outcome dependent on its ability to navigate the challenges posed by global economic shifts and the unpredictable actions of foreign leaders.
