Keir Starmer's dire warning over Donald Trump economic chaos - 'not a passing phase'

Keir Starmer has warned the economic chaos unleashed by Donald Trump will have a "profound" impact around the globe amid warnings of a global .

The PM said the tariffs which could devastate British businesses are not a "passing phase" as he described it as a "moment for urgency". In a speech to anxious staff at the Jaguar Land Rover plant in Birmingham he vowed to back the UK’s car industry “to the hilt” in a show of defiance to the US President.

And he said now is the time to "rise together as a nation" in the face of growing uncertainty. Mr Starmer told workers at the motoring giant - which will be hit by a 25% tariff on exports to the US: “Old assumptions that we've long taken for granted simply don't apply any longer.” He said the US President's measures are bad news for British business and would pose a "huge challenge".

It came as the FTSE 100 plunged by 6% this morning and markets across the plummeted in response to Washington's tariffs. The value of US stocks dropped sharply as markets opened, following falls in London and across Europe and Asia.

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The US President refused to back down despite turmoil on Wall Street, urging Americans to "be strong, courageous and patient", promising that "greatness will be the result". Mr Trump has imposed a 10% tariff on US imports of British goods, along with the 25% tariff on cars and separate import taxes for steel and aluminium.

Jaguar Land Rover has paused exports of its vehicles to the US as a result of the tariffs. The PM told workers: "Nobody is pretending that tariffs are good news. You know that better than anyone.

"25% tariffs on automative exports. 10% on other goods. That is a huge challenge to our future. The global economic consequences could be profound."

The PM said the current economic jitters are "not a passing phase". He announced a string of measures aimed at boosting the car industry, which he said made him "proud to be British". Mr Starmer confirmed there would be extra flexibility in the zero emission vehicle (Zev) mandate while petrol and diesel cars and vans are phased out.

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

Ministers are desperately chasing a trade deal with the US that could include exemptions from tariffs. But the PM said the UK would not be a walkover as it hammers out a trade deal with Washington, stating: “When it comes to the US I will only strike a deal if it's in our national interest.”

But he again refused to immediately strike back at the US, as other major economies including have done. 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."

Reform UK leader , who has long supported Mr Trump, said he thought the tariffs were "a bit excessive".

"He promised he'd do it in the run-up to the American election," Mr Farage admitted. "So you can't say he's breaking his promises, but I think the impact of it - my own view is the impact of it has been bigger than he could have predicted."

He said he speaks to Mr Trump "far less" now than he did during his first term as US president.

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