A Cabinet Minister has warned global tariffs are “bad news” when asked if the world was heading towards a global recession.
Transport Secretary Heidi Alexander said that an “escalating” trade war where tariffs are “constantly being ratcheted up” is in no countries’ interests.
She also slammed Donald Trump’s tariffs as “disappointing”.
Her remarks came as international stock markets tumble following the US President’s intervention last week.
Ms Alexander said: “It’s in nobody’s best interests for there to be an escalating trade war where tariffs are constantly being ratcheted up.”
Sir Keir Starmer has said he wants British manufacturers to be at the “forefront” of the electric vehicle “revolution” as he confirmed a raft of new reforms to boost manufacturers in the wake of the levies.
Companies are grappling with the new rules from the White House, which mean a 25% tariff is now applied to foreign cars imported into the US, while other products face a 10% levy.
Under new measures to be announced on Monday, rules around fines for manufacturers who do not sell enough electric cars will be relaxed, and supercar firms will be exempt.
She also denied the Government was weakening its net-zero policy after announcing a relaxation of the rules around fines for manufacturers who do not sell enough electric vehicles.
Transport minister Lilian Greenwood acknowledged changes to electric vehicle rules announced by the Government are not a “panacea” when asked if they would mitigate the full impact of Mr Trump’s tariffs.
She said: “Look, these changes are not a panacea, but what we are doing is backing British business, backing our world-leading carmakers to make sure that we are as a Government helping them to meet the challenges of the future.
“We know that moving to electric vehicles is the challenge of the 21st century in transport, and we want Britain to be right at the forefront.
“This is how we’re going to create the good jobs and opportunities for the future that get the British economy going.”
