Keir Starmer has been building economic deals with states for months – Donald Trump’s tariff chaos may ironically have the upper hand.
The Labor government initially hoped a trade deal would exempt Britain from import taxes, thus avoiding the worst taxes in the global trade war.
The early signs are good. “I think it’s very likely that among these two great friendly countries, I ended up with a real trade agreement, and tariffs are unnecessary,” the president said during a visit to the White House in February.
Sadly, Trump is often not as good as his words.
With negotiations still in progress between British and American officials, Trump announced that he is cracking down on tariffs on nearly every country in the world, including the UK.
Along with many other countries, all import taxes imported from the UK are subject to a 10% tax.
However, earlier this week, Starmer’s push increased, when Vice President JD Vance said there was a “great opportunity” for the UK-U.S. trade agreement.
Some people think this shows that now, given the chaos in the U.S. reputation has caused chaos in stock markets around the world.
Faisal Islam, Economics Editor at BBC “Now we need a deal with the UK now, not the other way around”.
He suggested that “lossing the ball” with the closest allies with the states would be a “bad market signal” sent by the United States.
The U.S. president insists that his tariffs are “fair” because states have more imports than many countries.
However, as of the end of 2024, the UK actually had a trade surplus, with its state of £1.9 billion, which could put the government in a strong negotiating position.
The fact that complicates the picture is that Starmer is also trying to “reset” the UK’s Brexit deal links with the EU.
Will Huttin, co-chair of a purposeful company, Written in the observer Trump is now “economic and politically posed” and cannot restore his tariffs without aggravating the U.S. debt crisis.
He said the UK should “negotiate with the EU and reach a broader trade agreement with the EU.”
Independent forecasting frontier economics estimate The impact of U.S. tariffs will reduce UK GDP by 0.7%, while its economic relationship with the EU is closer, which will increase by 1.5%.
Dr Mike Galsworthy, president of the European movement, also told the UK that a deal with the US would only “remove Britain away from the real deal with the EU”.
“The idea that Britain avoided 10% tariffs relatively unscathed is ridiculous,” he said.
“India, Brazil, Singapore and dozens of other countries are on the same boat – including the entire EU. This is not a sign of a special relationship.
“The trade deal JD Vance talks about recently is very clear about the economic interests of the UK.
“It is clearer that multiple benefits will immediately affect the struggling British economy and thus cannot break trade barriers with the EU.”
Galsworthy noted that spending regulators on budget responsibility estimate that leaving the EU has cut UK trade by 15% since Brexit – “Even with the United States, there is no trade agreement close to closing the gap.”
Daisy Cooper, a Treasury spokesman for the Liberal Democratic Party, also called on the government to get closer to the EU rather than the country.
“ Rather than seeking to appease Trump and Vance in our UK-based trade deal with high standards, the administration must support people and small businesses against their economic bullying by reaching new trade deals with our recent European and Commonwealth allies,” she said.
But Cabinet Office Secretary Pat McFadden spoke with HuffPost UK late last year, insisting that it was a wrong choice.
He said: “In terms of trade, we are an open trade economy and have to establish relations with the United States, the EU and China. The thing you have to choose is wrong.
“In the past, Britain has been successful, and it is through non-choice that ensures that it has established good relations with the United States and has established good relations with Europe.”
