Home » Downing Street defends UK-US trade as Trump signals possible tariffs

Downing Street defends UK-US trade as Trump signals possible tariffs

DOWNING STREET has insisted that the UK’s trading relationship with the United States remains “fair and balanced” after Donald Trump suggested the UK was “out of line” and hinted at potential tariffs.

Despite the warning from the US president, No 10 expressed confidence that a deal could be reached to prevent punitive measures, stressing that Prime Minister Sir Keir Starmer trusts Mr Trump to honour his commitments.

Trump hints at tariffs but sees room for a deal
Speaking in an interview overnight, Mr Trump indicated he was considering extending his tariff regime to both the UK and the EU but suggested that a resolution with Britain was possible.

Asked by the BBC on Monday whether he intended to impose tariffs on the UK, he replied: “UK is out of line, but I’m sure that one… I think that one can be worked out.”

The US president described discussions with Sir Keir as “very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”

UK seeks to reassure over trade ties
When asked whether Sir Keir trusts Mr Trump to keep his word, the Prime Minister’s official spokesman confirmed that their early discussions had been “constructive”.

“The Prime Minister has had a really positive and early set of conversations with President Trump and looks forward to working with him to deepen our trade, investment, security, and defence relationship,” the spokesman said. UK ministers have previously suggested that Britain may avoid US tariffs because the United States does not have a trade deficit with the UK.

Downing Street reaffirmed the strength of economic ties, describing the US as an “indispensable ally”. “We’ve got a fair and balanced trading relationship which benefits both sides of the Atlantic,” a No 10 spokesperson said. “It’s worth around £300 billion annually, and we are each other’s single largest investors, with £1.2 trillion invested in each other’s economies.”

EU braces for trade battle as Trump targets tariffs
Mr Trump has been far less conciliatory towards the European Union, declaring that tariffs on EU goods are inevitable due to America’s “atrocious” trade deficit with the bloc. “They take almost nothing, and we take everything from them,” he claimed.

EU officials are reportedly drafting contingency plans in response, with some leaders preparing for a trade confrontation with Washington. However, Sir Keir has taken a more cautious approach, stating: “It is early days. What I want to see is strong trading relations.”

He added: “In the discussions I have had with President Trump, that is what we have centred on – a strong trading relationship.”
On Monday, Trade Minister Catherine McKinnell echoed this sentiment, telling Times Radio: “The UK has every reason to look forward to a positive future with the United States and trade.”

Fears of a global trade war
Mr Trump has already announced a 25% tariff on goods from Canada and Mexico, as well as a 10% levy on Chinese imports. In response, all three nations have vowed to retaliate, raising concerns of an escalating global trade war.

The timing of Mr Trump’s remarks coincides with Sir Keir’s visit to Brussels, where he is attempting to reset Britain’s relationship with the EU while addressing geopolitical challenges, including Russia’s war in Ukraine.

Starmer urges EU to strengthen stance against Russia
During his Brussels visit, Sir Keir is expected to call on EU leaders to increase pressure on Russian President Vladimir Putin. He will urge European nations to match UK and US sanctions, arguing that recent threats from Mr Trump have “rattled” the Kremlin.

The Prime Minister will also meet Nato Secretary-General Mark Rutte, reinforcing Britain’s commitment to European security. However, these discussions risk being overshadowed by controversial comments from Mr Trump, including past claims about annexing Greenland from Denmark and incorporating Canada as America’s 51st state.

When pressed on these remarks, Downing Street refused to engage in speculation. “We’re committed to working with the EU, with Nato, and with the US on our collective security. I’m not going to get into hypothetical situations,” the Prime Minister’s spokesman stated.

Calls for closer UK-EU trade ties
Amid the ongoing trade tensions, Liberal Democrat leader Sir Ed Davey has urged Sir Keir to explore rejoining the EU customs union as a safeguard against potential US tariffs. Meanwhile, the Conservative Party has issued a set of “tests” for Sir Keir’s Brexit approach, warning that any failure to meet them would indicate a willingness to “undo” the settlement negotiated under previous Tory governments.

Among the Conservatives’ demands are continued UK control over trade negotiations and border policies, ensuring Britain remains outside the EU single market.

Europe seeks stronger ties with UK
EU foreign affairs chief Kaja Kallas has signalled a desire for deeper cooperation with Britain, particularly on defence.

“They are not in the EU, but they are still in Europe. And there is much we can still do,” she told EU ambassadors on Monday. “More cooperation on defence, for example, is vital and a logical next step.”

Arriving at the EU summit, she also warned Mr Trump about the risks of economic disputes. “If the United States starts a trade war, the one laughing on the side is China,” she cautioned. “We are very interlinked. We need America, and America needs us.”

With tensions mounting on multiple fronts, Sir Keir faces a delicate balancing act as he seeks to safeguard UK trade interests while reinforcing Britain’s role on the world stage.

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