(Bloomberg) -- UK Prime Minister Keir Starmer held “productive” discussions about “an economic prosperity deal” on a call with US President Donald Trump on Sunday evening ahead of a crunch week in which the government hopes to carve out exemptions from looming US tariffs.
A statement from Downing Street said the two leaders agreed that negotiations “will continue at pace this week” and that they will “stay in touch in the coming days.” Washington is scheduled to unveil a series of reciprocal tariffs on Wednesday that would remake the global trading system. Economists say the move would hammer UK growth and lead to tax rises in the autumn.
Trump wants to rebalance trade where it considers the US is being penalized, and may take non-tariff barriers such as taxes and regulations into account. Starmer has been working for months on relations with the White House and is considering cutting digital taxes on US tech firms in an attempt to secure special treatment for the UK.
Starmer and Trump also agreed on the need to keep up “the collective pressure” on Russian leader Vladimir Putin, the statement added. The comment came after Trump said he was “pissed off” with Putin for what appeared to be delaying tactics over a ceasefire deal with Ukraine. If Russia did not engage properly, Trump would impose “secondary sanctions” on Russian oil to prevent all sales.
Trump Threatens Russia Oil Penalties Citing Anger at Putin (2)
Last week, Trump pre-empted this week’s planned “Liberation Day” announcement on tariffs by signing a proclamation to impose a 25% tariff on car imports starting April 3, with further levies expected on goods from the UK, European Union and Canada. More on computer chips and pharmaceuticals may follow.
UK officials are in “intense” talks with Washington to secure an exemption or reduction, according to Home Secretary Yvette Cooper, who was speaking to Sky News on Sunday. She did not rule out the UK retaliating. “No option is off the table,” Cooper said. “The UK government will always act in the national interest.”
