UK Prime Minister Starmer Comments on Changes in Global Economic and Trade Landscape

The recent implementation of the 'reciprocal tariff' policy by the United States has triggered changes in the international economic and trade environment. UK Prime Minister Starmer publicly stated that this move signifies a 'fundamental change in the world order' and emphasized that the UK needs to adjust its strategy to respond to challenges. Starmer proposed two core directions: **promoting US-UK economic agreement negotiations** and **strengthening domestic industry protection and international cooperation** to mitigate the impact of tariffs.

Negotiations on US Economic Agreement

Starmer pointed out that the UK will prioritize discussions with the United States on a bilateral economic agreement aimed at securing tariff exemptions or reductions in certain key areas to prevent UK businesses from falling into unfavorable competition due to US tariff policies. This move is seen as a continuation of the UK's 'Global Britain' strategy after Brexit, attempting to consolidate the special relationship between the UK and the US in a complex trade environment.

Domestic Industry Policy and International Alliances

1. Industry Protection: The UK plans to support affected manufacturing, green energy, and technology industries through targeted subsidies, tax incentives, and supply chain support measures, enhancing the resilience of domestic enterprises.

2. Multilateral Cooperation: Starmer emphasized accelerating trade negotiations with the EU, Commonwealth countries, and Asia-Pacific economies (such as CPTPP member states) to promote the reduction of non-tariff barriers (such as technical standards and regulatory differences), building a diversified trade network, and reducing dependency on a single market.

Background and Challenges

After Brexit, the UK urgently needs to reshape its trade system, while the US tariff policy combined with global economic fluctuations (such as supply chain tensions and high inflation) further exacerbates pressure. Starmer's 'interventionist' industrial policy may face fiscal constraints and controversies surrounding free trade principles, but its clear goal is to stabilize the economy and employment.

International Response

The EU and some Commonwealth countries have expressed concern over the UK's policy shift, fearing it may intensify trade competition. Analysts believe that whether Starmer's strategy will be effective depends on the attitude of the US and the UK's flexibility in multilateral negotiations. Currently, amidst the trend of global economic fragmentation, the UK is attempting to seek a balance between protectionism and open markets.