Sir Keir Starmer has insisted Britain must not just “sit back and hope” in the face of ongoing uncertainty over Donald Trump’s global tariffs. The Prime Minister said the UK must “rise to the moment” following a week of panic in the markets over Washington’s trade policy.

His remarks came after the US president suspended some of his sweeping import taxes, bringing respite to battered stock markets across the globe, including London’s FTSE 100. The UK had been spared the higher rates faced by other nations, but the 10% “baseline” levy on all goods entering America remains in place, meaning Britain finds itself in the same position as other economies with the exception of China.

Tory leader Kemi Badenoch has urged Sir Keir to maximise the UK’s Brexit freedoms in the face of global economic turmoil.

She told the Daily Express that instead of “sitting back”, the PM should be going full throttle to boost trade with other nations.

Speaking on a visit to Doncaster on Thursday, Sir Keir reiterated his message that the tariffs signalled a shifting world to which the UK must adapt, without directly criticising the US president.

“This Government is ambitious for Britain,” he said.

“I’m not going to stand here and pretend that tariffs are good news. That is not true, and you wouldn’t believe me if I said it, but just as we’ve seen recently on defence and security across Europe, and with Ukraine, they do make one thing very clear, and that is that the world is changing, and we as a country must change with it.

“In other words, we’ve got to rise to the moment here, recognise where our future lies, renew Britain and deliver security for working people.”

Sir Keir said his Labour administration was “not a Government that’s just going to sit back and hope” but would deliver “fundamental change”.

Ministers still hope an economic deal with America can be reached to soften the blow of the tariffs, but are also seeking to strengthen trade relations with other countries to protect the economy from further potential shocks.

Chancellor Rachel Reeves will seek to negotiate with the US when she visits Washington at the end of April for the International Monetary Fund’s spring meeting of global finance ministers, she told the Financial Times.

She also said a UK-EU summit on May 19 would be a chance “to refresh our relationship and make it easier for businesses to trade”.

On Wednesday, Mr Trump said he would pause higher tariffs on trading partners such as Japan and the EU, telling reporters that “people were getting yippy” in an apparent acknowledgement of the market turmoil in recent days.

However, he said he would be raising his tax rate on Chinese imports to 125% amid an escalating trade war with Beijing, which has promised to “fight to the end” over the levies imposed by the White House.

Amid the rising market confidence, senior Cabinet minister Yvette Cooper continued to urge caution.

The Home Secretary told Sky News: “We are seeing changes all the time. We are seeing quite a lot of global instability.

“We are seeing that in the economy, we are seeing it also on security, on defence issues.

“But I think that just comes back to the approach that we have taken – it’s the plan for change the Prime Minister’s set out, maintaining that stability in the face of the different turbulences.

“We are not keeping a running commentary on different trade negotiations, on the different approaches that other governments are taking.”

She added: “What we are doing is just being really steady about this. We have made clear our principles and our approach. We want to see a reduction of trade barriers and we want to negotiate good arrangements that are in the UK’s interests.”

After its downturn in earlier days, the FTSE jumped by more than 6% on Thursday before dipping slightly, following a significant rally for markets in the US and Asia.

Imports of cars, steel and aluminium to America are all still subject to a 25% tariff.

A Downing Street source said the development vindicated Sir Keir’s approach and showed that “cool and calm can pay off.”

But despite the changes, economists remain concerned that the prolonged uncertainty over his policy will hold back growth around the world.

Mrs Badenoch has called on the Prime Minister to convene members of a trans-Pacific trading agreement to discuss ways to mitigate the impact of US tariffs.

The Conservative leader told BBC Breakfast: “When I was trade secretary we signed the biggest post-Brexit deal, CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership], with countries like Mexico, Canada, Australia, Japan.

“All those countries are feeling the brunt of US tariffs.

“What I would be doing if I was prime minister is convening those countries to see what we can do to make life easier for the citizens of our various countries.

“It’s always about making life better for people, reducing the cost of living. That can happen.”