Lammy has split from the official Labour line with a spirited attack on Trump’s tariffs. The government is insisting that negotiations with the US over a post-tariff deal are “ongoing” and “all options are on the table” while studiously avoiding criticising the President. Officials predict a deal will take months to carve out despite some excited reporting this week…
Tax minister James Murray dutifully said this morning, “Trump is acting in line with his electoral mandate” – echoing what the PM said yesterday to business leaders. Starmer even said tariffs were in line with US national interest. His foreign secretary tacks differently, telling Brussels last night: “I regret the return to protectionism in the United States, something we haven’t seen for nearly a century… all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time.” Personal and off-script…
Meanwhile, the four-week consultation process with businesses on potential retaliatory tariffs is basically over before it has begun with The Times reporting that every company has so far advised against retaliatory measures. James Murray admitted this morning that they would be damaging…
UPDATE: Downing street has slapped down Lammy’s comments (again). When asked whether Starmer would describe Trump’s tariffs as a “new era of protectionism”, the PM’s spokesman said: “No, I wouldn’t characterise it in any particular way apart from the fact that the global economic landscape is shifting, and we need to shift with it.”
Andy Haldane, Burnham’s recent adviser on the economy who has not taken up a No10 job, told Andrew Marr on LBC:
“The market now suspects that this is a traditional tax-and-spend socialist government with better TikTok videos…
imposing windfall taxes on oil & gas or on banks or upping capital gains tax would […] repeat the mistake that Rachel made […] The Achilles heel, the fiscal Achilles heel of this government thus far has been its unwillingness and/or inability to cut public spending.”