World
India
UK Prime Minister Keir Starmer has issued a stark warning, saying that “the world as we knew it has gone” following US President Donald Trump’s announcement of sweeping tariffs on international imports, including a 10% tariff on British goods, The Guardian reported on Sunday. The new US tariffs, which took effect Saturday, have triggered a sharp downturn in global stock markets and left world leaders scrambling to determine how best to respond.
In an opinion piece published in the Sunday Telegraph, Starmer expressed his readiness to “use industrial policy to help shelter British business from the storm” triggered by Trump’s tariffs. The prime minister’s comments came amid analysts’ forecast that the UK’s already sluggish economic growth could take a further hit, with estimates suggesting the economy could be up to 0.5 percentage points lower over the coming years due to the trade measures, the report said.
Starmer acknowledged the shift in global trade dynamics, noting that “old assumptions can no longer be taken for granted.”
“The world as we knew it has gone. We must rise to meet the moment,” Starmer wrote, according to The Guardian, signalling a pivot towards a seemingly aggressive, deal-driven approach to international relations.
“We are ready for what comes next. The new world is less governed by established rules and more by deals and alliances,” Starmer added.
The US tariffs, which were announced last Wednesday, have had an immediate impact, with almost $5 trillion (£4 trillion) wiped off global stock market values following Trump’s decision, the report said, adding that the FTSE 100 suffered its worst day of trading since the pandemic, while Wall Street also saw sharp declines.
In addition to the UK, several other countries have been hit hard by Trump’s tariffs. Cambodia, Vietnam, and Thailand have seen tariffs of 49%, 46%, and 36%, respectively, while the European Union now faces a 20% levy on all goods exported to the US. These trade barriers have sent shockwaves through the global economy, prompting fears of a protracted trade war.
Analysts have warned that the ripple effects of the tariffs could further dampen global growth. In the UK, the tariffs are expected to further strain the manufacturing and export sectors, worsening inflationary pressures and potentially leading to job losses in affected industries.
