Westminster Correspondent

Published 7th Apr 2025, 16:55 BST

The Prime Minister said the UK had to “rise together as a nation” in the face of a new era of global instability.

Stocks on Wall Street and in London lurched back and forth in a roller-coaster session for global financial markets, as volatility and uncertainty deepened.

The US S&P 500 index shot down by as much as 4 per cent shortly after New York markets opened, before swinging sharply higher, peaking at about 2 per cent, not long after.

The index then returned to negative territory, as the value slid by about 2 per cent about an hour after opening.

The movements were reverberating across European markets – losses in the FTSE 100 briefly eased, before sharpening again in line with the US’s benchmark index.

The FTSE 100 was deeply in the red this afternoon, sitting at a one-year low.

Speaking at a Jaguar Land Rover plant in the West Midlands, Sir Keir said: “These are challenging times, but we have chosen to come here because we are going to back you to the hilt.”

He said the visit was a “statement of intent”, showing the Government’s support for an industry which has been hit with a 25 per cent tariff by Mr Trump.

The Prime Minister said: “This is a moment for cool heads, nobody wins from a trade war, you know that.

“But it’s also a moment for urgency, because we’ve got to rise together as a nation to the great challenge of our age – and it is the great challenge – which is to renew Britain so we’re secure in this era of global instability.”

The Prime Minister announced new support for the automotive industry | Kirsty Wigglesworth/PA Wire

Sir Keir said “this is not a passing phase” and was a “completely new world”, with the economic turbulence following the defence and security instability caused by the war in Ukraine.

He added: “Let me be really clear, at a moment like this, our future is in our hands, and so of course, we will keep calm and fight for the best deal with the US, and we’ve been discussing that intensely over the last few days.

“But we are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe.”

Starmer confirms net zero changes

Sir Keir Starmer has confirmed changes to some of the Government’s net zero vehicle policies in a response to Donald Trump’s tariffs.

he Prime Minister announced extra flexibility in the zero emission vehicle (ZEV) mandate as the automotive industry phases out petrol and diesel cars and vans.

Sales of hybrid cars which cannot be plugged in to charge will be allowed to continue until 2035, although the Government confirmed the sale of purely petrol or diesel-powered cars will be banned from 2030.

While supercars - such as those sold at McLaren in South Yorkshire - will be allowed to be sold beyond the 2030 deadline.

“Because we’re not ideological about how we cut carbon emissions, we’re also going to make sure that cleaner, efficient petrol cars sold before 2030 count towards your EV mandate,” Sir Keir said.

“That will be good for British car manufacturers, like this one here.”

He explained: “British electric cars running off clean British power made by British workers. British cars for British workers.”

The announcement split the automotive sector down the middle. Environmental and pro-EV groups criticised the Government’s relaxation of sales rules, but the car industry insisted the measures do not go far enough.

“After months of uncertainty, we strongly welcome the Government confirming the 2030 phase out date and the headline trajectories for EV sales,” Vicky Read, chief executive of Charge UK, the trade body for EV charging businesses, said.

“There is no doubt that the UK’s future is electric. However, by introducing back door amendments the ZEV Mandate has been weakened, creating uncertainty for investment in EV charging infrastructure.”

Concerns have been raised that this could reduce the roll out of electric vehicle charging points, with Yorkshire and the Humber already having the lowest number per capita in Great Britain.

The Prime Minister hopes to be able to strike an economic deal with the White House to ease the tariffs imposed by Mr Trump.

However, the US President showed no sign of changing course, urging people to “be strong, courageous and patient”, promising that “greatness will be the result”.

He has imposed a 10 per cent tariff on US imports of British goods, along with the 25 per cent tariff on cars and separate import taxes for steel and aluminium.

Even Nigel Farage, one of Mr Trump’s biggest cheerleaders in the UK, admitted the tariffs are a “bit excessive”.

“The impact of it has been bigger than he could have predicted,” the Reform UK leader said, before adding he speaks to the President “far less” than he did in his first term.

Trump's tariffs: Prime Minister calls for 'cool heads' as stock markets plummet again

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