UK must avoid Trump’s Tariffs, says starmer
The UK must take all necessary steps to avoid the potential economic consequences of tariffs that incoming US president Donald Trump has pledged to impose, according to Sir Keir Starmer, the leader of the Labour Party. Starmer’s comments come amid growing concerns that Trump’s administration could impose wide-ranging tariffs on the first day of his presidency, which begins on January 20. Experts have warned that such tariffs could severely affect the UK’s goods trade with the US, a key trading partner.
In a session before the Commons Liaison Committee on Thursday, Starmer acknowledged the risks posed by Trump’s proposed tariffs but avoided speculating on the exact measures the new president might take. “I am not a fan of tariffs, and therefore, we have to make sure that we avoid them,” Starmer said. He further emphasized that the UK enjoys a strong trade relationship with the US, as well as with other countries, and expressed his desire to improve upon these trade links.
While Starmer’s comments were cautious, the potential impact of Trump’s tariffs looms large. A report earlier this month by the think tank Best for Britain warned that the imposition of tariffs by Trump could damage UK trade with the US to a degree comparable to the economic fallout of Brexit, which has already strained the UK’s trading relationship with the European Union.
A call for diplomacy
Starmer’s statement came just a day after a phone call between himself and Trump, during which the two leaders discussed their “joint ambition to strengthen the close and historic relationship between the UK and the US,” according to a Downing Street spokesperson. The conversation, which took place on Wednesday, is seen as an attempt to establish a working relationship with the incoming president, despite the looming tariff threat.
There is also speculation that Starmer may visit Trump early in 2025, following an initial meeting between the two in New York earlier this year. At that time, Starmer had called the meeting “good” and said it had been an important step in establishing a relationship with the incoming US leader. While the potential for a future visit signals a commitment to building ties with the US, it also highlights the delicate balancing act the UK faces in maintaining strong relations with both the US and the EU.
Tensions with musk and reform UK
Despite the attempts at diplomacy, Starmer’s relations with certain key figures close to Trump, such as tech billionaire Elon Musk, have been strained. Musk has been vocal in his criticism of Starmer’s response to this summer’s riots and has suggested that he might make a significant donation to the hard-right Reform UK party. These developments have added an extra layer of complexity to the UK’s political dynamics, particularly as Musk is seen as a significant ally of Trump.
On Thursday, Prime Minister Rishi Sunak also addressed questions about the UK’s trade future, dismissing the suggestion that Britain must choose between strengthening ties with the US or the EU. Sunak insisted that the UK can “pursue both” relationships, highlighting his desire for a closer partnership with the EU on security, defence, energy, and trade, while also working to improve relations with the US. “Is that going to be easy? Of course, it’s not. Do I think we can make progress? Yes, I do,” Sunak said, outlining his vision for a balanced approach to international relations.
Trade and diplomacy challenges ahead
The challenge for the UK will be to navigate the complex and potentially conflicting interests of the US and the EU, particularly as Trump’s administration begins to take shape. If Trump follows through on his tariff threats, it could have serious ramifications for UK businesses, particularly those involved in goods trade with the US.
While Starmer’s government would seek to avoid the imposition of tariffs, Sunak’s comments underline the government’s intent to keep relations with both the US and the EU as strong as possible. In the coming months, the UK will need to carefully balance its diplomatic and economic priorities, ensuring that it can strengthen ties with both sides of the Atlantic without jeopardising trade relationships.
As the new US administration takes office, much will depend on the ability of the UK’s leadership to engage with Trump’s team effectively, avoiding the damaging economic impact of tariffs while also securing favourable deals that could benefit British industries in the long run. With Brexit’s effects still being felt, the UK will need to chart a careful course, ensuring that it does not lose ground with either the US or the EU in the pursuit of its broader trade ambitions.