Keir Starmer is readying emergency measures to support British industry after Donald Trump sparked global chaos with his sweeping trade tariffs.
The Prime Minister will announce action this week to bolster UK businesses who have been stung by the US President's 10 per cent tariff on goods imported into America.
Mr Trump has also slapped a 25 per cent levy on foreign car imports, which has prompted Jaguar Land Rover to announce it will 'pause' shipments to the US.
Sir Keir is anticipated to acknowledge that 'globalization has ended' following statements made by the US President that triggered an international trade conflict, resulting in significant turmoil in global financial markets.
The FTSE On Friday, the 100 experienced its most significant decline in trading since the onset of the Covid-19 pandemic, with financial institutions being among those witnessing the steepest drops in value.
The Prime Minister plans to deliver a speech unveiling new initiatives aimed at stimulating economic growth, amid growing concerns over an impending global recession.
It is said that he plans to introduce portions of Labour's industrial strategy and simultaneously relax rules for electric vehicle producers.
Meanwhile, Chancellor Rachel Reeves is set to step up efforts to achieve a trade deal with India while also securing a fresh agreement with Australia.
The UK has been hit by Mr Trump's 'baseline' 10 per cent tariffs while others - such as the EU - have been stung by higher trade levies.
A senior Labour minister this morning begrudgingly admitted that Britain dodging the higher tariff rate imposed on Brussels was a ' Brexit dividend'.
Darren Jones, the Chief Secretary to the Treasury, said the UK had been 'treated differently to the EU' as a result of Brexit.
Asked if the lower 10 per cent tariff imposed by the US was a 'Brexit dividend', he told Sky News: 'It is, there's one.
'I've struggled to find one in the past but there is one we've ended up with. It's good, but what we're not going to do is pick or trade off the US or the EU.'
Mr Jones said the Government would respond to Mr Trump's action in a 'calm-headed and considered way', adding that 'a trade war is in no one's interests'.
But he rejected the US President's claim that Sir Keir was 'very happy' with the level of tariffs he has imposed on Britain.
'Keir has been clear that he's unhappy about the tariffs,' the Treasury minister said.
'I suspect what's being referred to there is the fact that the UK had the lowest tariff, and puts us in a much stronger position than other complex, large economies.'
Mr Jones said this was 'a vindication of our engagement with the US in the run up to the President's announcements.
'But clearly, we don't like tariffs; we're not happy about that,' he added.
He confirmed 'there will be further announcements from the PM this week on support for British business' in the wake of Mr Trump's tariffs.
In a later interview this morning, Mr Jones said globalisation had 'come to an end'.
Asked the if era of 'cheap fast-fashion or cheap TVs' was over, he told the BBC's Sunday With Laura Kuenssberg programme: 'Yeah, it's ended.
'The era of globalisation as we have experienced it over the past few decades is now at an end.'
'That's why we need Britain to be strong and resilient, also build out our relationships with our allies and partners around the world.
'However, the reason we must put money into the local economy is twofold: first, to benefit UK companies, and second, to enhance our public services. This way, we can develop a workforce and communities that are highly skilled and capable of seizing job opportunities within the country.'
Writing in the Sunday Telegraph, Sir Keir said that when it comes to tariffs, 'the immediate priority is to keep calm and fight for the best deal'.
The PM said that in the coming days 'we will turbocharge plans that will improve our domestic competitiveness'.
He added: 'We stand ready to use industrial policy to help shelter British business from the storm.
'This week, the Government will do everything necessary to protect Britain's national interest.
'Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.'
Tory leader Kemi Badenoch said there is 'a place for tariffs' but that the ones imposed by the US will be 'destructive for businesses'.
She told the BBC: 'The retaliatory tariffs will make people in our country poorer.
There is a role for tariffs, and we have utilized them before; however, currently, their impact would be to increase living costs for British consumers.
Mrs Badenoch spoke about the previous Conservative government negotiating a trade deal with Mr Trump's first White House administration in 2020.
Ms Badenoch stated, "I would like the Government to continue from where we paused."
We went through six negotiation sessions where certain decisions were reached, and these can be picked up and continued.
'But the most important thing is removing tariffs. The tariffs are going to be destructive for our businesses.'
Sir Keir has been taking calls from foreign leaders through the weekend to discuss the tariff changes.
He shared his 'concerns' about the impact on global economics and security in a call with Emmanuel Macron, after separate conversations with the PMs of Italy and Australia on Friday.
Mr. Trump has cautioned Americans that the tariffs "may not be simple," yet he has encouraged them to "stay strong."
On his TruthSocial platform, the president posted: "For the first time ever, we are revitalizing jobs and businesses."
So far, we have seen over FIVE TRILLION DOLLARS INVESTED, with the numbers climbing rapidly! THIS IS SHAPING UP TO BE AN ECONOMIC REVOLUTION, AND WE ARE CERTAIN TO EMERGE VICTORIOUS.
'STICK IT OUT, it might not be simple, but the final outcome will be legendary.'
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