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Sir Keir Starmer is calling on global leaders to reduce trade barriers among them to mitigate the effects of Donald Trump 's tariff war.
Last evening, the Prime Minister initiated an urgent series of diplomatic discussions aimed at aligning strategies in response to President Trump’s declaration of ‘Freedom Day,’ which involved imposing new tariffs. This move has led to significant financial upheavals globally.
Yesterday evening, the Prime Minister talked about the crisis over the phone with Italy’s Prime Minister, Giorgia Meloni, and Australia’s leadership. Anthony Albanese .
Downing Street They unanimously concluded that a full-scale trade war would be highly detrimental and not beneficial to anyone," he further stated, "It has been evident for quite some time that nations with similar perspectives must sustain robust connections and communication to safeguard our collective security and uphold economic stability.
Sir Keir is anticipated to keep up his diplomatic efforts by reaching out via phone to several European, Commonwealth, and Gulf leaders throughout the weekend.
He plans to advise them against responding to the American action with reciprocal tariffs, as experts fear this might push the globe into an even more severe trade conflict.
He might propose that they focus on reducing trade obstacles to mitigate the effects of the US President's tariffs.
Whitehall sources said the PM was 'very interested' in the proposal which was floated yesterday by former minister and Goldman Sachs chief economist Jim O'Neill.
Lord O'Neill stated that the ministers were correct in their approach to "courteously continue negotiations regarding a trade agreement with the United States."
However, the independent peer stated that the US President's 'suicide strategy' suggested leaders should consider restructuring the worldwide economy and ‘cease this reliance on the American consumer’.
He mentioned that the economies of other G7 nations were similar in scale to that of the United States, and proposed that significant economic players such as China and India might be invited to join forces.
He told BBC Radio Four's Today program: "It would be quite prudent to engage in a substantial discussion with the other G7 countries regarding the reduction of trade barriers among us."
That would greatly benefit all those nations since it’s the sole domain of global trade where most countries have not made sufficient progress.
Number 10 dismissed Mr. Trump’s assertion yesterday that he feels "very pleased" about the tariffs applied to the UK, which fall within the lowest 10 percent range—half of what is charged to the European Union. A spokesperson stated that Sir Keir expressed disappointment over this decision.
A government official stated that Sir Keir will keep pushing for a trade agreement with President Trump, yet they also noted, "He believes we cannot simply adopt a strategic reaction."
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