April 18, 2025 | London/Washington – In their first phone call since President Donald Trump imposed new tariffs on British imports, UK Prime Minister Sir Keir Starmer and Trump held productive trade discussions, according to a statement from 10 Downing Street.
The leaders addressed the importance of “free and open trade”, with Starmer emphasizing the need to protect the UK’s national interests. Talks are said to be “ongoing and constructive.”
Tariffs Hit UK Exports Hard
The conversation comes in the wake of Trump’s recent decision to impose:
- 10% tariffs on a broad range of UK goods
- Up to 25% tariffs on cars, steel, and aluminum imports from the UK
The move has sent shockwaves through global markets, with major indexes like S&P 500, FTSE 100, DAX, and CAC 40 all experiencing declines. Some partial recovery has followed announcements of temporary exemptions for select products.
Meanwhile, U.S. Vice President JD Vance confirmed that there is a “strong possibility” of reaching a trade agreement with the UK, offering a glimmer of hope amid economic tensions.
Global Impact and Geopolitical Dimensions
Beyond trade, the leaders also discussed foreign policy issues, including:
- The ongoing conflict in Ukraine
- Escalating tensions with Iran
- Recent strikes against the Houthi rebels in Yemen
The World Trade Organization (WTO) has warned that the global trade landscape is shrinking due to protectionist policies, while the IMF has downgraded global growth forecasts as a result of the new tariffs.
In response, the UK is actively pursuing a bilateral trade agreement with the U.S., while other major economies like the EU and Canada have retaliated with counter-tariffs of their own.
