UK seeking ‘strong trade relationship’ with US amid tariffs, Starmer says
The UK will seek a “strong trading relationship” with the US, Sir Keir Starmer has said, as the threat of a trade war looms after Donald Trump announced new tariffs.
The US president has introduced a 25% levy on goods coming from Mexico and Canada, and a 10% trade tax on Chinese goods, which will come into effect on Tuesday.
Both Canada and Mexico have vowed to counter the levies with retaliatory tariffs on US goods, while China has said it will enact measures to protect its interests.
The penalties have sparked fears of a new era of trade wars across the globe.
Sir Keir was asked about the tariffs as he welcomed German Chancellor Olaf Scholz to Chequers, the Prime Minister’s country estate.
“It is early days. What I want to see is strong trading relations,” he told reporters.
The Prime Minister added: “In the discussions that I have had with President Trump, that is what we have centred on, a strong trading relationship.
“So it is very early days.”
Home Secretary Yvette Cooper had earlier warned that Mr Trump’s actions risk having a “really damaging impact” on the global economy.
Asked about Mr Trump’s announcement, she told the BBC’s Sunday with Laura Kuenssberg: “Tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see.”
The US tariffs are aimed at forcing its two nearest neighbours into doing more to prevent illegal migration into America, as well as the flow of the drug fentanyl.
Critics of the trade penalties have warned they could also fuel inflation in the US economy, driving up prices.
Ms Cooper also told the BBC that the UK’s focus was “on building trade links and better trading relationships, and removing barriers to trade, with the US and also with other European countries and with countries right across the world”.
“We want to reduce the barriers to trade, make it easier for businesses,” she added.
The Government’s opponents have called for differing approaches to the potential threat that tariffs could also be placed on UK goods.
While the Liberal Democrats have called for the UK to agree a customs union with the EU, Conservative shadow business secretary Andrew Griffith said Sir Keir Starmer should pursue closer trade ties with the US.
The Prime Minister should “be rediverting his plane” from Belgium, where he will meet EU leaders on Monday, to Washington DC, the senior Tory said.
Ministers have previously said they do not believe the US will impose tariffs on the UK, as it does not have a trade deficit with Britain.
Sir Keir has, meanwhile, said the UK does not need to make a choice between closer ties with Europe or with the US.
By David Lynch and Will Durrant, PA Political Staff