Starmer admits UK will face Trump tariffs amid global recession fears: Live

The UK and Finland are “tied hip-to-hip” on Nato, Finnish president Alexander Stubb has said after meeting Sir Keir Starmer in Downing Street.

A red carpet was rolled out on the steps of No 10 on Monday afternoon for the Finnish president, who also met US President Donald Trump on Saturday.

Addressing media inside No 10, Mr Stubb, who said much of his family had dual Finland-UK nationality, added that “Keir and I hit it off, in the beginning, straight off the bat”.

The Finnish president added: “I’m really glad to see the leadership the UK is showing, not least in the war in Ukraine. And in many ways, in my mind, the UK is back, back in the game.

“We’ve had an interesting week in many ways, last week in Paris with the Coalition of the Willing, many phone calls with Zelensky, myself meeting President Trump on Saturday, and we continue the conversations today and try to find solutions together.

“But I think Finland and the UK are tied hip-to-hip and in so many places, including Nato and of course, JEF (Joint Expeditionary Force) which you guys founded.”

Sir Keir said Mr Stubb was “welcomed as a leader and a friend”, adding that the UK and Finland had a “great relationship”.

The Prime Minister added: “I know that on all the important issues, whether it’s Ukraine or other global issues, our thinking is very closely aligned.

“And certainly I think the closer we can work together on some of these challenges, the better.”

Andrew Griffith, shadow trade secretary, said: “This news is potentially a hammer blow not just to British businesses and workers but to his own Chancellor whose creative accounting at the emergency budget fails to include the impact of tariffs.

“Labour claims talks with the US are going ‘well’. But, if this is what well looks like, I wouldn’t like to see what the opposite looks like. The Prime Minister has so far failed to come up with the goods, he needs to rekindle our US trade deal.

“This is just further proof that, when Labour negotiates, Britain loses.”

The Independent’s data correspondent Alicja Hagopian reports:

Many economists believe that trade tensions sparked by Mr Trump will slow economic growth around the world.

The Organisation for Economic Co-operation and Development (OECD) said earlier this month that US trade policy would be a “drag on global activity” and hit living standards around the world.

“Overall, consumers face much of the burden of higher tariffs,” the OECD said in its economic outlook report, with real disposable incomes estimated to decline by 1,600 US dollars (£1,237) per household in the US.

In terms of the UK impact, experts say there is a great amount of uncertainty about how tariffs will filter through to households and businesses, especially if the country avoids steep penalties.

Economists at the Bank of England said the effect on inflation in the UK would depend on how other countries respond with their own trade policies, and how foreign exchange rates are affected.

Economist Swati Dhingra, a member of the Bank’s Monetary Policy Committee, has said the UK is sensitive to changing import prices.

But she suggested that the inflation impact could be “less than feared” because the main goods that the US imports from the UK, including refined oil, were unlikely to see cost increases on account of tariffs.

The Bank, which sets UK interest rates, said it was a “rapidly evolving situation” that it was monitoring closely.

Sir Keir Starmer is facing an “impossible task” in deciding whether to retaliate to Trump’s looming tariffs, an expert has warned.

Simon Finkelstein, director of geopolitics at the Brunswick Group said “It would be foolish to do so, however, politically it might become untenable not to do so.”

“Fundamentally he’s got an impossible task because the people who work for the President clearly don’t know what he’s going to do on Wednesday either,” he told Times Radio.

“But I think the thing [Starmer] has got to do is continue on the same strategy, which is attempt to negotiate some sort of future deal with the US, whether that looks like something sort of wider range or more limited on technology to mitigate the worst aspects of the tariffs.”

“The UK government has to at least try,” Mr Finkelstein added.

Financial markets are facing a wave of uncertainty as investors brace for the fallout from Donald Trump’s latest tariff threats.

London-listed stocks are expected to suffer, with the FTSE 100 set for a turbulent start to the week.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, warned that “the last day of March is spring-loaded with uncertainty” as concerns over sweeping tariffs send markets into turmoil.

Asian indices have already seen sharp declines after hopes for a more targeted approach to duties faded.

Over the weekend, Mr Trump signalled that broad new tariffs would take effect on Wednesday —dubbed ‘Liberation Day’ — raising fears of a global trade war.

“He appears determined to target countries across a range of sectors,” Ms Streeter said, but warned that reviving domestic industries would take years and lead to higher costs in the meantime.

The uncertainty has fuelled recession fears in the US, further unsettling markets.

With inflation already running hot, expectations of US interest rate cuts are fading.

Meanwhile, gold has surged above $3,100 as investors seek safe havens.

“The gold rush has sparked a rush of interest from individual investors,” Ms Streeter noted, as buyers snap up gold amid fears of further economic instability.

The billionaire owner of Luxury car manufacturer Aston Martin has announced he will increase his share in the company as it faces huge losses from Donald Trump’s tariffs.

Executive chairman Lawrence Stroll said his consortium, Yew Tree, had increased its holding in the company from 27.7 per cent to around 33 per cent.

Yew Tree has acquired 75 million new shares, raising around £52.5million for Aston Martin.

On behalf of the Yew Tree Consortium, Mr Stroll said: “I am pleased to clearly demonstrate my unwavering support and commitment to Aston Martin.”

“Now five years into Aston Martin’s transformation, I remain highly confident about the company’s medium-term prospects having re-positioned the Company as one of the most desirable ultra-luxury high performance automotive brands,” he added.

“The coming years will be pivotal in realising our vision and ambition.”

According to Bank of America, Aston is the most exposed luxury vehicle manufacturer, with almost 29 per cent of its sales happening in the United States.

Following the announcement, shares of Aston rose 6.8 per cent, putting them at the top of the FTSE 250. So far this year, they have dropped 35 per cent.