The President-elect is said to be considering a plan which will see the UK “pull[ed] away from the EU” and moved towards a special trade deal with the US.
Donald Trump has claimed that he intends to increase tariffs on imported goods by 10 per cent – with rises of up to 60 per cent on China imports.
However, a Trump source has said that a special UK-US deal is under consideration, according to former Financial Times editor, Lionel Barber.
Such discussion began under the Republican’s former administration, but was paused when he lost the 2020 presidential election.
Such a discussion began under the Republican’s former administration, but was paused when he lost the 2020 Presidential Election
REUTERS
Barber said: “Trump feels that neither Tory nor Labour governments have made anything of Brexit. No Singapore in the Atlantic etc.
“So he will set a test, pulling [the] UK further from EU alignment. Over to you, Keir [Starmer]!”
Director of the Centre for European Reform Charles Grant said: “Trump hates the EU but quite likes the UK.
“He could offer the Brits a privileged position (fewer tariffs?) in Europe so long as they differentiate themselves from the EU – and don’t line up closely with it.”
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Adding to speculation on a potential trade deal, former Prime Minister Donald Trump has said in his Daily Mail column: “Donald Trump would certainly do a free trade deal with the UK too – though I expect the Starmer Government is too pathetic to try.”
So far, Labour has announced that trade negotiations are underway with nations such as Bahrain, Kuwait, Oman, Qatar, India, Israel, the UAE, Saudi Arabia, South Korea, Switzerland and Turkey.
However, a deal with America was frozen in 2020, when Biden entered the White House and former business secretary Kemi Badenoch said that “the Biden administration is not doing FTAs [free trade agreements]”.
Still, the UK has trade deals with eight individual states – Indiana, the Carolinas, Oklahoma, Utah, Washington, Florida and Texas – in an attempt to boost international investment and cooperation.
Since taking office in July, Prime Minister Keir Starmer has said that he intends to “reset” Britain’s relationship with the bloc, although European leaders have reportedly said that he is yet to demonstrate a coherent vision of what that means
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The UK is currently negotiating with the states of California, Colorado, Illinois and New York.
However, the current business secretary, Jonathan Reynolds, has said that Labour will not lower British food standards for American exports – according to Politico – as previous negotiations saw a clash on chlorinated chicken and hormone-treated beef.
He said that the deal would be “difficult” to settle.
Since taking office in July, Prime Minister Keir Starmer has said that he intends to “reset” Britain’s relationship with the bloc, although European leaders have reportedly said that he is yet to demonstrate a coherent vision of what that actually means.