Britain is being urged to adopt a firmer stance in response to the UK export tariffs by Trump administration, following the US president’s decision to impose a 10 per cent levy on British goods.

Former UK ambassador to Washington, Sir Nigel Sheinwald, has warned that the government must go beyond cautious diplomacy and send a stronger message of potential retaliation.

His comments come as the UK government works to shield its economy and negotiate a carve-out deal with the United States that would spare British businesses from the full impact of the sweeping new trade tariffs. With major global economies also targeted, Britain faces growing pressure to respond decisively or risk being left behind in the escalating trade dispute.

Sir Nigel criticised the government for not acting sooner, stating that stronger threats should have been made earlier.

“I think it’s right that we should say we’re going to think about retaliation. We might indeed have said that a little bit earlier on.
“I think it’s always wrong to take that off the table or sound as if you don’t mean it, because in the world of trade policy and trade negotiators, this is a tough world where you’ve got to brandish those weapons and seem as though you’re prepared to use them. I think the tempo and the tone need to be notched up somewhat.”
Sir Nigel Sheinwald

While the UK has kept all options open, including the possibility of countermeasures, officials have so far remained measured in tone. But with financial markets reacting sharply and global supply chains under threat, calls are mounting for the UK to take a bolder line.

Car Industry At Heart Of UK Response

Meanwhile, Transport Secretary Heidi Alexander expressed concern over the broader economic fallout from retaliatory tariffs introduced by countries like China.

“The imposition of global tariffs and the reciprocal tariffs that some countries have and retaliatory tariffs that some countries have decided to apply, are bad news for the global economy, because it’s bad for global demand, it’s bad for prices and it’s bad for consumers.”
Transport Secretary Heidi Alexander

The UK government is preparing a support package aimed at the automobile industry.

“That is why we have to do everything that we can to protect the interests of the British people and British businesses. That is why we are setting out a package of support today for the car industry to provide certainty to British manufacturers and to ensure that they can remain at the cutting edge of the transition to electric vehicles, and also make sure that consumers can benefit from the cheaper running costs of electric vehicles as well.”
Transport Secretary Heidi Alexander

The prime minister is expected to unveil the full package in a speech that positions the UK as a leader in green manufacturing. He will emphasise the need to act quickly in what he calls a “new era of global instability,” and outline steps the government will take to shield key industries.

Planned reforms include relaxing penalties for companies that fall short of electric vehicle sales quotas, with special exemptions for luxury carmakers. The goal is to encourage growth in the green automotive sector while easing the regulatory burden amid rising global tensions.

Stock markets in Europe and Asia have already felt the impact of the tariff announcements, with significant losses reported on Monday morning. Investors are bracing for more volatility as Wall Street opens, fearing further trade disruptions and political fallout.

Under the new policy from the White House, imported foreign vehicles will face a 25 per cent tariff, while other British exports to the US are now subject to a 10 per cent duty. Businesses on both sides of the Atlantic are grappling with the implications, while UK officials race to negotiate relief and prevent lasting economic damage.

Analysts warn that unless Britain presents a credible threat of reciprocal action, it risks being sidelined in future trade discussions. For now, the spotlight remains on how the UK government will match tough rhetoric with real consequences.