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”.
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.
Please use Chrome browser for a more accessible video player
1:20
PM holding fire on Trump’s Liberation Day tariffs
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.”
Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.
With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.
Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.
But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.
“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.
“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”
Ms Powell was responding to a “Labour source” who told the New Statesman last week:“Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”
Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.
Image: Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
Phillipson denies leaks
But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”
And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.
“I don’t know if there’s been any discussion between the teams,” she added.
On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.
“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.
“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”
She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”
Spotify
This content is provided by Spotify, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spotify cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spotify cookies.
To view this content you can use the button below to allow Spotify cookies for this session only.
But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.
“The party is withering on the vine at the same time, and people have got big jobs in government to do.
“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”
The result of the contest will be announced on Saturday 25 October.
The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.
The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.
HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.