Trump’s stance on VAT and Ukraine tests PM’s mettle

US president threatens to hit UK with 21 per cent tariffs

- MILLIE COOKE

Sir Keir Starmer is on a collision course with Donald Trump over the future of Ukraine and the president's latest threat to impose tariffs on the UK, as the two leaders face their first major test since the Republican took office.

The US president announced on Thursday that he would impose “reciprocal tariffs” on all other countries, charging the same amount as levies imposed on American exports – claiming such a move was “fair to all”. The policy published by the White House included VAT as a target – which analysts have suggested could knock around £24bn off UK GDP over the next two years.

It comes amid growing concern over how Mr Trump’s agenda could impact the global defence landscape, after he held shock talks with Russia’s Vladimir Putin and the US suggested Ukraine may be forced to give up some of its territory.

His defence secretary Pete Hegseth indicated that Nato membership is not a realistic prospect for Ukraine, despite the alliance’s official position being that Kyiv is on an irreversible path to joining the alliance.

The UK issued a robust response, saying “there can be no negotiation about Ukraine without Ukraine” – paving the way for the two countries to clash over the issue if Volodymyr Zelensky is excluded from the negotiating table.

And in the first talks between Sir Keir and the Ukrainian president since Mr Trump’s intervention, the prime minister broke ranks with the US, reiterating Britain’s commitment to Ukraine’s path into the alliance.