Trump tariffs live: President dismisses tariff pause as Netanyahu vows to ‘eliminate’ US trade barriers

Sir Keir Starmer has vowed to back British businesses “to the hilt” amid the growing fallout from Donald Trump’s damaging global trade war.

Days after Jaguar Land Rover (JLR) was forced to suspend shipments to the US, the prime minister visited the carmaker’s largest production plant to outline the government’s plans to support UK industry.

With British and international markets suffering historic falls, the PM acknowledged Britain was facing “challenging times”.

Archie Mitchell has the full story here

Business and money editor Karl Matchett writes:

S&P 500 futures were pointing towards an opening around 2.5 per cent down today - we'll see very shortly if that's just the start of events through when the market opens Stateside.

The FTSE has rebounded a little from the earlier sharp drop but is still more than four per cent down and Asia, of course, suffered a tremendous drop overnight.

President Trump has attempted to quell panic in the markets with a social media post, but businesses and economic analysts tend to pay more attention to growth prospects, cost pressures and solid financials, rather than capital letters and exclamation marks.

Political correspondent Archie Mitchell writes:

Just days after Jaguar Land Rover suspended shipments to the US due to Donald Trump’s tariffs, Sir Keir Starmer has travelled to its major plant in Solihull to deliver a speech outlining support for the beleaguered car industry.

The PM will announce a series of tweaks to the rules manufacturers must follow as they transition away from petrol vehicles which he hopes will spur growth and support the sector.

His presence at the JLR facility is symbolic, as it has been one of the highest-profile firms to spell out the devastating impact of Mr Trump’s 25 per cent tariffs on foreign cars.

It will be seen as the PM putting his arm around the industry. But, while auto bosses welcomed tweaks to the net zero transition for carmakers, they spelled out that more will be needed to make a serious difference.

Time will tell whether Sir Keir is ready to grasp the scale of the challenge.

Sir Keir Starmer has warned “global economic consequences could be profound” as the world grapples with Donald Trump’s sweeping tariffs.

Speaking from the West Midlands today, the UK prime minister said: “That is a great challenge for our future and the global economic consequences could be profound.”

Starmer has re-asserted his support for the automotive industry as he addresses workers at Jaguar-Land Rover.

“These are challenging times but we have chosen to come here because we are going to back you to the hilt,” he said.

“There is no doubt the challenge but this is a moment for cool heads. Nobody wins from a trade war.”

“Its also a moment for urgency because we’ve got to rise together as a nation.”

He added: “This moment has also made something very clear that this is not a passing phase and just as we’ve seen with national security and defence ... and now with our commerce and trade, this is a changing and completely new world.

“An era where old assumptions simply don’t apply any longer.”

Business and money editor Karl Matchett writes:

As expected, there's an initial sell-off beyond the futures markets as retail investors and others get involved in the selling. The S&P 500 is down about 3.4 per cent after opening, with the Dow and Nasdaq down 3.7 and 4.3 per cent respectively.

"This domino effect of potential higher prices, weakened demand, reduced production, and potential job cuts, has sent a shockwave through global markets. The uncertainty surrounding the scope and duration of the tariffs, combined with elevated equity valuations after two years of double-digit returns, has fueled a wave of panic selling," says Dan Segal of Warwick Business School.

"In just a few days, both the FTSE 100 and the S&P 500 have declined by roughly 10 per cent, reflecting investor concerns that the worst may still lie ahead.

"Still, the most critical advice in times like these is this: Don’t panic. History shows that equity markets are highly volatile during periods of economic and geopolitical uncertainty; however, they tend to rebound once the dust settles. This may be a moment of turbulence but not necessarily of collapse.”

Political correspondent Archie Mitchell writes:

Speculation has been rife that Sir Keir Starmer’s declaration of the dawn of a “new era” of trade and economics meant the government’s fiscal rules were in line for a change.

Germany tweaked its own borrowing limits in response to rising global insecurity in the wake of Donald Trump’s return to the White House.

But despite talk of, and hopes that, Rachel Reeves might follow suit in the wake of the US president’s trade war, she backed the existing rules on Monday.

Ms Reeves said increasing uncertainty “means doubling down on economic stability, the basic condition to secure economic growth”.

She added: “It is why this government has stuck to its fiscal rules in the spring statement, even when they were tested, demonstrating that when Britain talks about economic stability, we really mean it, and stability matters even more for working people and for business in an uncertain world.”

Sir Keir Starmer has promised the UK will only strike a deal with the US if it is in the national interest, as “intense” discussions continue.

Speaking from the West Midlands today, the UK prime minister said: “Of course, we wil keep calm and fight for the best deal with the US and we’ve been discussing that intensely over the last few days.”

But he added: “I will only strike a deal if it’s in the national interest.”

Sir Keir Starmer has explained the changes the government is making to rules around automotive sales.

The prime minister announced sales of new hybrids that cannot be plugged in will be permitted to continue until 2035.

Changes to the zero emission vehicle (Zev) mandate also mean it will be easier for manufacturers which do not meet EV sales targets to avoid fines.

“We’re going to help car companies in Britain reach targets that support growth,” he told automotive workers on Monday.

“This is the moment we back British business and charge up the electric revolution.

This comes after US President Donald Trump imposed a 25% tariffs on car imports.

Prime minister Sir Keir Starmer called for the UK to "rise together as a nation" in response to global instability as he acknowledged the challenges posed by Donald Trump's tariffs.

Speaking at a Jaguar Land Rover plant in the West Midlands, Sir Keir said: "These are challenging times, but we have chosen to come here because we are going to back you to the hilt."

He said the visit was a "statement of intent", showing the Government's support.

The prime minister said: This is a moment for cool heads, nobody wins from a trade war, you know that.

"But it's also a moment for urgency, because we've got to rise together as a nation to the great challenge of our age - and it is the great challenge - which is to renew Britain so we're secure in this era of global instability."