Britain declares end of globalization era

In 2016, the United Kingdom dealt a significant blow to the international order of the last 40 years by voting to leave the European Union (Brexit). Now, it is officially declaring the end of globalization.

According to a report in The Times, UK Prime Minister Keir Starmer will announce the end of the globalization era, following US President Donald Trump’s imposition of harsh tariffs and an “America First” policy that triggered a global trade war, casting a shadow of uncertainty over markets.

The report indicates that in his address to the nation today (April 7), the Prime Minister is expected to admit that the globalization that began after the collapse of the Soviet Union in 1991 has “disappointed” millions of voters. He is also likely to acknowledge why Trump’s economic nationalism has resonated with supporters who believe they have not benefited from free trade and mass migration.

Citing a senior British official, the report states that while the UK does not agree with Trump’s 10% “basic” tariff and other recent protectionist measures, the Starmer government recognizes the dawn of a new era in which Trump’s methods have garnered significant support.

The official, whose views were included in the report, said, “Trump did something we don’t agree with, but there’s a reason people are behind him on this. The world has changed, globalization is over, and we are now in a new era. We must demonstrate that our approach, a more active Labour government, a more reformist government, can provide answers for people in every part of this country.”

Today’s speech will be Starmer’s first major intervention since Trump introduced comprehensive taxes on imports. During this speech, Starmer will acknowledge that the seismic effects on the global economy prove that the UK needs to “move further and faster” to boost growth through “supply-side reforms.”

Starmer signaled his intentions for today’s speech in an article published in the Sunday Telegraph yesterday (April 6).

The Prime Minister stated that he is ready to use industrial policy to “shield British business from the storm” expected from US President Donald Trump’s wave of tariffs.

Starmer said he would continue to seek a trade agreement with the US to avoid some tariffs, but also discussed the possibility of state intervention to protect “national interests.”

Starmer wrote, “Some people may be uncomfortable with this; the idea that the state should directly intervene to shape the market has often been ridiculed. But we cannot cling to old sentiments when the world is changing so rapidly.”

The British leader announced that this week they would accelerate plans to increase local competitiveness to be less exposed to new global shocks.

In the article, the Prime Minister reiterated the government’s view that it would “remain calm and fight for the best deal” with the US, but said that “all options are on the table,” adding, “I will only make a deal if it is right for British business and working people.”

The British government also plans to make pro-growth announcements this week, such as easing regulations for electric car manufacturers and bringing forward some parts of the government’s industrial strategy.

In addition, London held an “economic and financial dialogue” with New Delhi last Wednesday to accelerate a trade agreement, while also striving for a new agreement with Australia.

In a move foreshadowing Starmer’s announcement, Treasury Secretary Darren Jones also declared the end of the globalization era.

Speaking on the BBC’s “Sunday with Laura Kuenssberg” program, Jones was asked whether globalization, which led to a boom in imports of cheap clothing, electrical goods, and other products, had ended.

Jones replied, “Yes, it has ended. The Prime Minister himself said this this morning. Globalization as we have known it for the last few decades has ended.”

Jones stated that this change means that the UK needs to “improve” its relations with allies around the world while also investing in its own economy. He denied that ministers were “scrambling” for a solution.

The Secretary insisted that the government is “trying to overcome these challenges” and that is why it is “investing in industrial policy as well as the NHS [National Health System] and skills.”

The UK government has maintained its policy of not responding to US tariffs with tariffs, as other countries have done, and ministers have said they prefer a “calm” approach focused on a UK-US trade agreement.

“We hope to make a deal,” said Jones, arguing that as a result of diplomacy on tariffs, they have “a better outcome” than other similar countries.