UK will ‘keep all options on the table’ amid Trump’s trade wars, PM says

Published

6 days ago

March 28, 2025

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Sir Keir Starmer has vowed to “keep all options on the table” after Donald Trump imposed a “very concerning” 25% tariff on all imported cars into the US.

The president signed an executive order on Wednesday for the tax to kick in on 2 April – what he has called “liberation day”.

The move ratchets up the global trade war that Mr Trump promised he would ignite upon entering the White House for a second term.

Speaking in Paris on Thursday, the prime minister described the tariffs as “very concerning” and said the UK “will keep all options on the table” and “put the national interest first”.

“I think we need to keep, as ever, pragmatic and clear eyed. We are engaged, as you know, in intense discussions with the US on economic arrangements, on a number of fronts, including to mitigate tariffs,” the prime minister said.

“We will continue in that way because I think that, rather than jumping into a trade war, it is better pragmatically to come to an agreed way forward on this if we can.”

Earlier, Chancellor Rachel Reeves told Wilfred Frost on Sky News Breakfast that the UK does not want to “escalate” Mr Trump’s trade wars.

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She said: “We’re not at the moment in a position where we want to do anything to escalate these trade wars.

“Trade wars are no good for anyone. It will end up with higher prices for consumers pushing up inflation after we’ve worked so hard to get a grip of inflation, and at the same time, will make it harder for British companies to export.

“So look, we are looking to secure a better trading relationship with the United States. I recognise that the week ahead is important.

“There are further talks going on today, so let’s see where we get to in the next few days.”

The chancellor’s answer does leave the door open to the UK potentially responding to the US president’s actions, which risks a huge impact for the UK’s car industry including manufacturers such as Jaguar Land Rover, Aston Martin and Rolls-Royce.

However, the UK government has sought to maintain a positive relationship with Mr Trump in a bid to avoid further punitive tariffs that he maintains are necessary to grow the US economy by boosting domestic manufacturing and protecting jobs.

The president has already imposed tariffs on all steel and aluminium imports to the US, which came into effect on 12 March.

The move has affected UK products worth hundreds of millions of pounds.

While the European Union has announced it will impose retaliatory tariffs on the US, UK ministers have only said they are “disappointed” to see the tariffs on steel and aluminium and that “all options are on the table”.

Business Secretary Jonathan Reynolds previously said there would be no immediate retaliation by the UK government as negotiations continue over a wider trade deal with the US.

A lucrative trade deal with the US is all the more pertinent for Ms Reeves after she admitted during her spring statement that the Office for Budget Responsibility (OBR) had halved the UK growth forecast for 2025 from 2% to 1%.

However, the fiscal watchdog said that while growth had been downgraded for this year, it had been upgraded for every year after for the rest of this parliament – which is due to end in 2029.

Living standards, as measured by household disposable income, will fall after this year to almost no growth in 2027-28 before rising again due to firms rebuilding profit margins, wage growth slowing, taxes rising, and welfare measures taking effect.

The chancellor said on Wednesday that she was “not satisfied with the numbers” for this year.

During the statement, Ms Reeves said she had restored the government’s £9.9bn fiscal “headroom” – the room she has to spend money before she breaks her fiscal rules.

However, the OBR has warned this could easily be jeopardised by global events.

“If global trade disputes escalate to include 20 percentage point rises in tariffs between the USA and the rest of the world, this could reduce UK GDP by a peak of 1% and reduce the current surplus in the target year to almost zero,” it warned.

Politics

Musk’s government-efficiency blockchain: What could go wrong and what could go right?

Published

4 hours ago

April 2, 2025

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Musk’s government-efficiency blockchain: What could go wrong and what could go right?

Opinion by: James Strudwick, executive director, Starknet Foundation

The outlook surrounding the use of new technologies has shifted in Washington. Tesla CEO and presidential adviser Elon Musk’s proposition to incorporate blockchain technology into the US Treasury has placed blockchain and its use for state finances at the forefront of the global debate. According to Musk, much of this drive is rooted in the concern over the unsustainability of current government spending. With its immutable ledgers and transparent audit trails, blockchain is waiting in the wind, offering a potential solution to managing vast public finances.

Musk advocates for a unified information system that can track real-time payments, credentials and government resources, spurring a debate within the fintech community about the pros and cons of introducing such a tool at the government level. The idea is compelling, as the description on the blockchain tin effectively promises accountability, traceability and streamlined operations. The shift here, namely to a blockchain-powered government infrastructure, presents several challenges that may prove to be beyond what the new administration has expected thus far.

Blockchain as state appendage

A concern for stakeholders orbiting the blockchain world revolves around the sheer scale of government operations. Every day, the US government handles thousands of transactions across various departments. The feasibility of Musk’s vision is put into question simply as a result of its own complexity. The provable security that blockchain technology must offer while handling millions of daily transactions without buckling under the load to succeed at this scale is enormous.

A proposed solution by Musk is a hybrid model that uses “Validium” zero-knowledge rollups. The speed and efficiency of modern ZK-rollups, which can handle hundreds of millions of transactions daily, have the potential to make sure each citizen’s share of government transactions is intact and verifiable. The technology’s rapidly evolving nature, scaling to handle even higher transaction volumes in the coming years, indicates that this could be achievable.

Unfortunately, this in itself comes with its own hurdles, particularly when integrating public services, which tend to operate in silos.

The human question

The great irony here is that Musk’s declarations of government inefficiency as a reason for the ongoing shakeups could be one of the biggest reasons not to go ahead with the plan. The real obstacle here is not so much technological as it is deeply, irrevocably human. The transition from archaic legacy systems to the more modern infrastructure of blockchain requires not just software updates but an entire reprogramming of the workforce. Government employees embedded in bureaucracy are used to outdated systems, and retraining them will be no small task.

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Moreover, current government databases are a labyrinth of poorly documented, indecipherable data. Extracting and migrating this data to a blockchain infrastructure is itself a task that may require serious investment. For all its elegance, blockchain wasn’t built to contend with such inefficiency. Despite its potential for handling complex, distributed environments, the difficulties present in the system itself could make the transition more complicated than the hassle is worth.

Balancing transparency and confidentiality

Transparency of federal spending is also a factor worth highlighting. The innate strength of blockchain and its much-lauded appeal is its strength. It permits citizens to track how public funds are allocated and spent. Musk’s premise could foster a so-far unseen level of accountability, which makes transactions, every delegation of power and every resource distribution visible to the public in real-time.

The problem is that sensitive government data, classified information or personal identification could be dangerously exposed on a public blockchain. Musk’s response is to try to tether sensitive data to private channels in the blockchain and ensure that only individuals with the appropriate authorization or from specific departments can access confidential information. Theoretically, this addresses the security concern while allowing blockchain’s public verifiability.

Musk’s offer could lead to a more efficient, accountable system. The social drive behind this is the longstanding criticism of wasted spending and resource misallocation. There is also a possibility of strengthening democratic processes by holding public officials more accountable. A decentralized authority has the broader impact of empowering citizens through real-time access.

There is a forward-thinking aspect to the vision. It raises a profound question. Technology could address human governance challenges, but we run the risk of a fundamental shift in how we understand privacy and accountable authority. As we question the nature of governance, it warrants careful consideration of the role of blockchain and what it could ultimately mean for the future of society as a whole.

Opinion by: James Strudwick, executive director, Starknet Foundation.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Politics

UK preparing for ‘all eventualities’ ahead of Trump tariffs, Starmer says

Published

4 hours ago

April 2, 2025

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UK preparing for 'all eventualities' ahead of Trump tariffs, Starmer says

Sir Keir Starmer has said the government has been preparing “for all eventualities” ahead of Donald Trump announcing global tariffs later on Wednesday.

The US president is set to announce details of fresh tariffs on imports into the US after he said all countries will be targeted in his bid to “rebalance” trade agreements.

Mr Trump is expected to announce 20% tariffs on most US imports on what he has called “Liberation Day”.

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Sir Keir told Prime Minister’s Questions (PMQs): “We’ve been preparing for all eventualities ahead of the confirmation of US tariffs later today.

“Let me be clear with the House: a trade war is in nobody’s interest, and the country deserves, and we will take, a calm, pragmatic approach.

“That is why constructive talks are progressing to agree a wider economic prosperity deal with the US.”

He said the government is working with all industries and sectors in the UK that are likely to be impacted.

The prime minister added his government “will rule nothing out” as he again hinted at retaliatory tariffs.

However, he said he believes the UK’s interests are “best served by calmly trying to secure a deal”.

On Monday, Sir Keir told Sky News political editor Beth Rigby US-UK trade talks are “well advanced” and “rapid progress” had been made.

However, he admitted it is likely “there will be tariffs” as negotiators had not managed to fend them off in time.

At PMQs, Sir Keir rejected jumping into a trade war with the US, saying: “That cannot be the first response of the United Kingdom.”

The impact of potential retaliatory tariffs from the EU on Northern Ireland was also raised, with DUP MP Gavin Robinson reminding the prime minister not to forget the unique trade situation in Northern Ireland.

He said while exports from Northern Ireland are UK exports, imports to the country could be hit by tariffs imposed by the EU as it shares a border with the European bloc.

The Belfast East MP asked whether government trade teams are attempting to exempt Northern Ireland from any EU action.

Sir Keir reacted by saying what is needed is to be “calm and pragmatic”.

He added the business secretary had spoken to the Northern Ireland government on Wednesday morning, “because this is a serious issue and we need to work together to resolve the interests of everybody in Northern Ireland”.

Last week, Mr Trump said he was open to carving out deals with countries seeking to avoid US tariffs, but those agreements would be negotiated after 2 April.

He previously said he “may give a lot of countries breaks, but it’s reciprocal”, adding: “We might be even nicer than that.”

Politics

More than 400 Sikh groups call on Starmer to launch ‘promised’ inquiry on Golden Temple massacre

Published

4 hours ago

April 2, 2025

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More than 400 Sikh groups call on Starmer to launch 'promised' inquiry on Golden Temple massacre

More than 400 Gurdwaras and Sikh organisations are calling on Sir Keir Starmer to launch an inquiry he promised into potential British involvement in the Golden Temple Massacre.

The groups have signed a letter that was sent to the prime minister urging him to follow through on a commitment made in 2022.

The calls relate to questions around what part the UK and British special forces played in the 1984 killings, in which hundreds of Sikhs died after the Indian military entered the temple complex where separatists had sought refuge.

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In 2014, the UK government accidentally revealed Margaret Thatcher was aware of the Indian state’s intention to raid the temple and in the months before the raid, a British SAS officer provided advice to the Indian government.

A subsequent investigation commissioned by David Cameron found that a single officer provided advice – and there was “no evidence of UK government involvement in the operation itself”.

However, this investigation was criticised as a cover-up due to its limited scope and quick timeframe.

In 2022, Sir Keir wrote to all Gurdwaras and Sikh organisations, saying: “A future Labour government will open an independent inquiry into Britain’s military role in the Indian army’s 1984 raid on the Golden Temple in Amritsar. It is important that we are open, transparent and above reproach in understanding any role the UK may have played in such events.

“This is something I know is important to our Sikh communities here and throughout the world.”

However, an announcement on the inquiry is yet to materialise.

In the letter sent to the prime minister by the Sikh Federation, seen by Sky News, Sir Keir is told: “If what is eventually proposed by a Labour government fails to deliver the ‘truth’ as promised by you this will have massive political ramifications for the Sikh community’s support for Labour in future elections for many generations.”

The federation says an inquiry “must” be announced by 31 May.

In a letter to Labour MPs, the Sikh Federation also called on them to put pressure on the government to start an inquiry.

The organisation also said it had heard “extremely worrying rumours” that the Foreign, Commonwealth And Development Office has been under pressure from the Indian government to “avoid or limit” an independent inquiry.

It added: “Civil servants are understood to be advising that a public inquiry is expensive and could damage relations with India.”

The UK is currently trying to negotiate a new trade agreement with India in the wake of Brexit. Attempts by the Conservative government failed due to a difference in position over visas.

There is a campaign among some in the Sikh community for an independent nation to be established – known as Khalistan – out of parts of the Punjab region in northern India.