Britain’s Chief Secretary to the Treasury Darren Jones has declared the era of globalisation “as we’ve known it” to be over, marking a significant shift in the UK government’s economic rhetoric as it braces for the fallout from a new wave of global trade tensions, sparked by US President Donald Trump’s latest tariff offensive.
Speaking on the BBC’s Sunday with Laura Kuenssberg, Jones said the UK must now pivot from reliance on international trade towards a more self-reliant economic strategy, combining domestic investment with targeted industrial policy.
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The comments come amid growing international anxiety following President Trump’s announcement of sweeping new import tariffs, including a 10% “baseline” duty on UK goods — part of a broader “Liberation Day” policy that has roiled global markets and triggered retaliatory measures from China, Canada, and others.
“Globalisation, as we’ve known it for the last couple of decades, has come to an end,” said Jones. “That’s why we have to invest in the domestic economy… both for UK businesses, but also our public services.”
End of an Era
The end of the globalisation era — defined by decades of increasing trade liberalisation, multinational production chains, and cheap consumer imports — was affirmed by Prime Minister Sir Keir Starmer in a weekend Sunday Telegraph article. Starmer hinted at upcoming state intervention to protect UK industries vulnerable to Trump’s tariffs and promised that his government would “do everything necessary” to safeguard Britain’s economic interests.
“We are witnessing a fundamental reshaping of the global economic order,” Starmer wrote. “The world as we know it has gone.”
The Labour government is now believed to be considering the early release of its industrial strategy and parts of its spending review, both of which had been scheduled for June. While Jones stopped short of confirming a timeline, he signalled that preparations for an economic realignment were already well underway.
Pressed on whether the publication would be brought forward, Jones deferred to the Prime Minister’s upcoming statement but laughed when Kuenssberg suggested: “That sounds almost like a yes, but you’re not allowed to say it to us this morning.”
Trade Deal Hopes Amid Rising Tariff Tensions
Despite the global uproar over the United States’ tariff hikes, the UK is opting for a more measured diplomatic approach, resisting calls for retaliatory tariffs and instead seeking a bilateral trade deal with Washington.
“We’re hoping to do a deal,” said Jones. “We have a better outcome than other comparable countries as a consequence of our diplomacy.”
The UK’s restraint contrasts with countries like China and Canada, which have already announced countermeasures against the US duties. Officials say Britain’s strategy is focused on avoiding further harm to consumers, who would likely face higher prices if the government responded in kind.
However, Conservative leader Kemi Badenoch took issue with the Labour government’s response, accusing it of failing to prevent what she described as a looming economic storm.
Badenoch: “Globalisation Isn’t Over, It’s Fragmenting”
Appearing on the same programme, Badenoch pushed back against Jones’s declaration of the end of globalisation.
“I don’t agree globalisation is over,” she said. “What’s happening is fragmentation — but we still have a great trading relationship with many other countries.”
The former trade secretary pointed to opportunities to revive the UK-US trade deal that was pursued under Boris Johnson’s leadership and abandoned during Joe Biden’s presidency. She called on Labour to “pick up where we left off.”
“The most important thing is removing tariffs. The tariffs are going to be disruptive for our businesses,” she warned. “That is going to make a whole mess of the tax take that Chancellor Rachel Reeves thought she was going to be getting in her budget.”
Badenoch also reiterated her view that retaliatory tariffs would only backfire on UK consumers.
The Economic Stakes of “Liberation Day”
President Trump’s so-called “Liberation Day” — a reference to his aggressive tariff regime aimed at reshoring American industry — has been met with condemnation from global leaders and warnings from economists about the risk of a worldwide recession.
The UK, despite its special relationship with the US, has not been spared from the impact. British firms in sectors like automotive manufacturing, steel, pharmaceuticals, and tech now face an uphill battle to remain competitive in the face of rising export costs.
With the Office for Budget Responsibility (OBR) expected to revise growth forecasts downward, Labour’s plans for public investment, especially in the NHS, education, and green energy, may also face fresh scrutiny.
“The world is moving towards a new kind of economic nationalism,” one senior Treasury adviser told the BBC off the record. “We have to choose between clinging to the past or building a new foundation for resilience.”
The Industrial Strategy: What to Expect
Labour’s forthcoming industrial strategy — which Jones said has been in development since the party was in opposition — is expected to focus on rebuilding domestic manufacturing capacity, investing in emerging technologies, and boosting skill development.
While exact details remain under wraps, Starmer has previously committed to:
- Strengthening UK supply chains
- Backing key industries such as renewable energy, semiconductor production, and pharmaceuticals
- Creating “growth clusters” outside London to address regional inequalities
Analysts believe this approach reflects a broader political consensus emerging across Western democracies: that economic security, not just economic efficiency, is now the guiding principle of trade and industrial policy.
A Global Turning Point
The shift away from globalisation may be unfolding more quickly than many expected. With multiple governments now prioritising economic sovereignty, reshoring jobs, and decoupling from unstable global supply chains, the post-Cold War era of open markets and tariff-free trade appears to be giving way to a more fragmented and protective order.
Still, the path forward remains uncertain. While Starmer’s government seeks to redefine Britain’s economic future amid these seismic shifts, critics argue that political unity and swift execution will be key.
“There’s no room for delay,” said one manufacturing sector representative. “The tariffs are real. The disruption is immediate. We need action, not promises.”
Conclusion
As Britain navigates the turbulent waters of a changing global economy, the end of globalisation — once unthinkable — may now be a defining truth of the era.
Whether this moment leads to renewed industrial strength or economic isolation will depend on how effectively the government can translate its ambitions into resilient policies that support UK workers, protect industries, and forge new international alliances in a post-globalisation world.
