Lib Dems leader demands tough stance against Trump's tariffs
He's been speaking in Gloucestershire and Wiltshire today (9 April)
Last updated 9th Apr 2025
The leader of the Liberal Democrats - Sir Ed Davey - is demanding a tough stance against Donald Trump's tariffs from the UK Government.
There's been further turmoil on European and Asian markets after China was hit with a 104-percent levy on goods entering the US.
Speaking in Wiltshire today, the Ed Davey says the UK must stand with it's economic allies.
'We need an economic coalition of the willing'
He added: "It's extremely worrying that what has really been our closest ally is behaving like this to Britain, and indeed the rest of the world, and threatening a world recession.
"I think the government's right to talk to the White House, but I think they need a second strategy as well.
"We need an economic coalition of the willing against Donald Trump.
This means talking with our European partners, doing better trade with them, as well as talking with our Commonwealth partners like Canada and Australia and New Zealand.
"These tariffs are already having an impact on our businesses here in the UK.
"They're already seeing rises in National Insurance for employers, which is going to affect a lot of businesses.
"I think businesses are truly worried.
"The Labour government has been very disappointing and made some very bad decisions with the jobs tax and National Insurance and and other mistakes as well.
"And now we have President Trump hitting our economy and the world economy which will hit us.
"I feel sorry for people running business, and the government has got to do more.
"They should get rid of the jobs tax... If there was ever a reason to get rid of the job tax, these tariffs are it.
"We need our business to be able to take on staff and pay them better, not not cut back. And we need to stand up to Trump in a far tougher way than is currently happening.
"So I think there's really a big need for quite significant change in the government's economic policy, something that's what Liberal Democrats are arguing for."
This all comes as the Chancellor, Rachel Reeves, has been seeking to reassure the City as stocks continued to slide following Donald Trump's imposition of sweeping tariffs.
The Chancellor said she was committed to reducing barriers to trade and securing a deal with the US as she pushed Britain as an attractive investment location.
Ms Reeves and City minister Emma Reynolds had talked up the UK's "stable political climate" and the Government's reforms to capital markets and "commitment to bolstering the UK's retail investment culture", a Treasury spokesperson said.
The meeting came as the import taxes announced by the US president last week came into effect, including a 10% levy on all goods from the UK along with a 25% charge on cars and other taxes on steel and aluminium.
Following the imposition of the tariffs, and a new 104% levy on some Chinese imports, the FTSE 100 fell again, wiping out most of Tuesday's gains.
Meanwhile, yields on long-dated government bonds surged to their highest point since 1998 as investors anticipated faster interest rate cuts from the Bank of England, raising the cost of government borrowing.
The Bank itself warned on Wednesday that risks to the stability of the world financial system had increased because of the imposition of US tariffs, but added that UK households and businesses remained resilient.
Amid the ongoing market turmoil and uncertainty about global trading relations, Ms Reeves has said the UK is "accelerating trade deals with the rest of the world" as she prepares to meet her Indian counterpart.
She is meeting Nirmala Sitharaman alongside Trade Secretary Jonathan Reynolds today (9 April) for talks aimed at securing a deal with India.
The UK has been through more than a dozen rounds of talks since 2022 over a potential agreement with India, which is forecast to become the world's third largest economy.
Key sticking points were said to include visa rules for Indian students and professionals, as well as access for British service firms.
Meanwhile, ministers still hope an economic agreement with Washington can be reached to soften the blow of Mr Trump's tariffs.
Ms Reeves told the Financial Times on Wednesday that she would seek to negotiate such an agreement when she visits Washington at the end of April for the International Monetary Fund's spring meeting of global finance ministers.
She also talked up Universal's decision to build a theme park in Bedfordshire as a sign of "the enduring relationship between the UK and the United States of America".
Discussion of a deal with the US has raised concerns about what concessions the Government might make in order to secure an agreement.
Earlier in the week, the Prime Minister told MPs he would be "very protective" of the NHS and was "very clear" that a digital tax on big tech firms should remain in place.
Meanwhile, Conservative leader Kemi Badenoch told reporters on Wednesday the Government should "look at mutual gain", adding trade deals were "not about tit for tat giving things away".
She said: "This is what Keir Starmer needs to do. My worry is that he can sign a trade deal that just gets us back to where we were last week. What we actually need is a trade deal that is going to be for the future, not the past."