Former British Prime Minister Tony Blair called on today’s leaders not to retaliate against US President Donald Trump’s expansive new tariffs, cautioning that doing so would not be in Britain’s interest.
Attending King’s College London, Blair endorsed Labour leader Keir Starmer’s tempered reaction to news that British goods sold to America will be subjected to a 10% tariff across the board. The step rocked international markets and sparked warnings of a debilitating economic hit on the UK’s finances.
I do not think that it is in the UK’s interest to retaliate,” Blair said, leaving room for uncertainty about how the situation could turn out. He also challenged Trump’s so-called “Liberation Day” tariff policy, which slaps sweeping levies on most trade partners around the world.
Although the UK government initially refrained from issuing threats of countermeasures, it subsequently threatened retaliatory tariffs if trade talks with the US fail to secure an exemption. Ministers are currently considering a list of more than 400 American goods ranging from bourbon whiskey to Harley-Davidson motorbikes which could be taxed as a response.
Former Treasury minister Jim O’Neill warned against only depending on a US trade agreement, recommending instead that the UK deepen trade relationships with China and India, and harmonize cuts in tariffs across G7 partners with the US excluded. This, he believed, would secure the UK’s trade position without weakening from the effects of American economic isolationism.
Treasury officials, meanwhile, confirmed intensive negotiations are ongoing in hopes of securing a last-minute deal. However, economic shockwaves are already being felt. The FTSE 100 hit a three-month low, and the Dow Jones recorded its steepest drop since 2020.
Blair also raised long-term concerns over European security, recalling the Kosovo conflict and warning of overdependence on the US for defence under NATO.
