April 7, 2025 | London — The world economy faces unprecedented upheaval after former U.S. President Donald Trump’s sweeping tariffs triggered a financial meltdown, wiping out £4.6 trillion from Wall Street in days and forcing nations into emergency talks.
UK Prime Minister Sir Keir Starmer declared, “The world as we knew it has gone,” in a stark warning about the collapse of global trade norms.
Market Chaos and Corporate Fallout
Trump’s 25% tariff on auto imports and 10% levy on other goods have sent shockwaves through global markets. British firms like Jaguar Land Rover have halted U.S. shipments and warned of price hikes for consumers.
As the EU and China prepared retaliatory measures, the UK’s FTSE 100 plummeted 6% at one point—its worst drop since the 2020 pandemic crash.
Starmer’s Response: A “New Era” of Deals Over Rules
In an op-ed for the Sunday Telegraph, Starmer argued that the post-globalization era will be defined by “deals and alliances, not established rules.” While acknowledging Trump’s populist appeal, he warned tariffs risk “profound” global harm and vowed to shield Britain by:
- Fast-track industrial reforms, including relaxed EV regulations to aid carmakers.
- Strengthen EU ties by coordinating with Commission President Ursula von der Leyen on “proportionate countermeasures.”
- Pursuing alternative trade pacts, with Chancellor Rachel Reeves accelerating India deal talks.
Trump’s Defiance and Diplomatic Standoff
Unfazed by the turmoil, Trump spent the weekend golfing in Florida and doubled down on Truth Social: “My policies will never change.”
The U.S. has not engaged in tariff talks, leaving the UK’s 10% rate—dubbed a “Brexit dividend” by Treasury officials—as a reprieve.
Global Reckoning Ahead
Von der Leyen will meet Starmer in London on April 24 at the International Summit on Energy Security, where tariffs and economic resilience will dominate discussions.
Meanwhile, economists warn of prolonged inflation and supply-chain disruptions, with Starmer urging “cool heads” amid calls for retaliatory tariffs that could further strain households.
— Reported by M10News Global Desk | Sources: Downing Street, Reuters, Sky News, and Telegraph
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