Apr 06, Kathmandu- British Prime Minister Keir Starmer has said the new world will be governed less by established rules and “more by agreements and alliances.”

Recognizing the changing global economic trajectory, he said he was now prepared to use direct state intervention to protect some sectors.

"This week, ahead of an expected major announcement on industrial strategy, we will set out plans to improve our domestic competitiveness," he said.

"We stand ready to use industrial policy to protect British businesses from the storm."

“Some people may feel uncomfortable about this, but when the world is going through this, we cannot remain in the same old mindset,” he said.

“The world as we know it is over,” he said. The UK is ready to use direct state intervention to shield industry from the impact of US tax hikes.

“US President Donald Trump’s sweeping tax hikes on Wednesday show that ‘old assumptions can no longer be taken for granted’,” Starmer said in an article published in the Sunday Telegraph newspaper.

“The new world is governed less by established rules and more by ‘agreements and alliances’,” he said. It demands the best of British qualities and the alternative is common sense, practicality and a clear understanding of our national interests.

Prime Minister Starmer said the immediate strategy was to “stay calm and fight for the best deal”, reiterating his government’s belief that “no one wins in a trade war”.

He said a US trade deal would only be made “if it is right for British business” and that “all options remain on the table” to respond to the 10% tariff on the UK.

British luxury carmaker Jaguar Land Rover said in April it would “suspend” exports to the United States in response to new trade conditions.