Sir Keir Starmer stated that a trade war is not beneficial, rejecting the imposition of retaliatory tariffs on the US amid Donald Trump’s threats to increase tariffs on NATO allies over Greenland. Trump aims to buy Greenland for its strategic value and resources, threatening a 10% tariff on goods from several European countries unless they comply. The International Monetary Fund warned of significant risks to the global economy if these tariffs are enacted, potentially harming the UK economy and pushing it closer to the EU. Analysts predict that new tariffs could decrease UK GDP by up to 0.75%, risking recession and prompting UK businesses to adapt to the changing trade landscape.
