Labour 'will support key industries' hit by tariffs

Keir Starmer has said the government will step in to support key British industries as business grapples with the economic turmoil unleashed by Donald Trump's global tariffs.

- Pippa Crerar

As the government attempts to counter the impact of the White House hitting the UK with a 10% base levy on exports to the US, the prime minister will promise to help shelter vulnerable sectors and will implement key parts of the industrial strategy months early.

In his first significant intervention since the US ushered in a new economic era last week, Starmer will announce plans to give carmakers more flexibility over how they meet a target to stop sales of new petrol and diesel cars by 2030.

Smaller manufacturers such as Aston Martin will be exempt from the target while the sale of hybrid cars will continue until 2035 to give industry more time to prepare for the shift to electric vehicles, a growth sector for the UK. Other sectors to be hit by Trump's tariffs are expected to receive support later in the week, with life sciences likely to be among them.

Ministers will announce measures such as cutting red tape and removing more planning restrictions, all designed to stimulate growth.

"Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our plan for change," Starmer will say in a speech in the West Midlands today.

"I am determined to back British brilliance. Now, more than ever, UK businesses and working people need a government that steps up, not stands aside. That means action, not words."

Almost $5tn (£4tn) was wiped off the value of global stock markets after Trump launched his tariff offensive on the rest of the world last Wednesday.