TARIFFIC DEAL?
Starmer vows he can keep Trump onside AND seek closer ties with Europe despite looming US-EU trade war
Global markets took a pounding after Mr Trump unleashed tariffs on Canada and China and warned Europe was next
SIR Keir Starmer last night insisted he can keep Donald Trump onside and seek closer ties with Europe — despite a looming US-EU trade war.
The PM said it was not “an either-or” decision despite the American President suggesting Brexit Britain would be spared a coming tariff blitz on the bloc.
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Speaking at Nato, Sir Keir, who was greeted by secretary general Mark Rutte, vowed to “stay resolute” in our relations with Washington and Brussels.
He insisted: “We are not choosing between them.” But he will come under intense pressure from the White House in the coming weeks to side with America.
Mr Trump branded the EU “an atrocity” for not importing enough American cars, food and goods and threatened imminent tariffs.
While he hinted that the UK would be exempt from his trade war, he blasted: “The UK is way out of line, and we’ll see . . . I think that one can be worked out.”
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No10 insisted UK-US trade was “fair and balanced” and said the PM was seeking to improve ties ahead of formal talks over a post-Brexit free-trade deal.
Global markets took a pounding after Mr Trump unleashed tariffs on Canada and China and warned Europe was next.
The rout began in Japan, the Nikkei falling 2.66 per cent while France’s CAC, Germany’s DAX and the UK’s FTSE100 all shed more than 1 per cent.
US stocks also faced pressure amid fears a trade war could make goods costlier for Americans too.
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European car makers did worst. Vauxhall owner Stellantis saw 4.52 per cent wiped off its market value. Volkswagen lost 4.34 per cent, Mercedes Benz 2.9 per cent.
Shares in drinks giant Diageo sank 3.74 per cent, investors fearing tariffs in Mexico will hurt its tequila business, and levies in Canada dent its Crown Royal whisky.
Britain must not be plunged into Brexit surrender as part of Keir Starmer’s EU reset, warn critics
Sir Keir, who met EU leaders yesterday as part of his relationship “reset”, is under pressure not to blow his relationship with the US by cosying up to the continent.
Asked if he can play both sides, the PM said: “It’s really important that we work with both and we don’t see it as an either-or.
“It is in the best interests of the UK, but also the best interest I think in terms of global security and defence, that we continue to work both with the US and with Europe on these vital issues.”
He said there is a “huge amount of trade between the US and the UK, as we have with the EU”.
Sir Keir said: “That’s why it’s important I always act in the national interest, the best interests of the UK, so we stay resolute in saying that it’s important we work with both sets of partners, particularly in this volatile time.”
He yesterday became the first British PM since we left the bloc five years ago to attend a meeting of the EU Council.
The one-time Remainer is lobbying European leaders for closer ties on defence, security and trade.
In return, the notoriously-grasping bloc is demanding more access to Britain’s rich fishing waters and free movement for under-30s in a Youth Mobility Scheme.
Sir Keir added: “Now, tonight is very much obviously about security and defence, where I do think there’s a very important discussion to be had about how we increase our security and defence work together in a very volatile world.
“Also, I will touch on the wider reset which goes beyond defence and security into the fields of energy and into trade.”
But pledging not to prioritise the EU over America, he said: “Both of these relations are very important to us. We are not choosing between them, but that’s historically been the position of the UK for many, many decades now.”
Allies of Mr Trump have urged Britain to hitch its wagon to America — which has experienced healthy growth in recent years — instead of the “socialist” EU.
Quizzed on the prospect of import taxes on the UK, Sir Keir said: “I think what’s really important is open and strong trading relations. That’s been the basis of my discussions with President Trump. I know that intense US-EU discussions are planned.”
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Mr Trump suggested over the weekend that Britain would dodge his tariff blizzard.
He further hailed his strong early relationship with Sir Keir, who returned the praise. He said Mr Trump had “rattled” Vladimir Putin by threatening harsher sanctions on Russia.
Sir Keir was last night guest of honour at the Palais d’Egmont in the Belgian capital for dinner with the 27 EU leaders. It was where then-PM Ted Heath joined Britain to the European Community.
Reform UK leader Nigel Farage blasted: “The EU has invited Keir Starmer to a leaders summit in the very building where Ted Heath signed away our sovereignty in 1972.
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This is deliberate and humiliating. Starmer has learned nothing from the Brexit vote. It will come back to bite the Labour Party.”
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TARIFF Q&A
What is a tariff?
A TAX on foreign goods coming into a country.
They are paid by the domestic business which is importing the goods, with the charge going to the government. Most tariffs are set as a percentage of the value of the goods.
For example, a 25 per cent tariff would mean a charge of $10,000 on a $40,000 car.
Who picks up the bill?
Normally, the cost is passed on to consumers, through higher prices. The importer could choose to absorb the tariff charge itself — but this would soon hit profits.
What does Trump want to achieve?
In the case of Canada, Mexico and China, the President is trying to force them to take action to stop the flow into the US of illegal migrants and drugs, such as Fentanyl. His anger at the European Union is because it exports far more to America than it imports.
Trump is especially furious that the US market is flooded with European cars, like BMWs.
Why is a trade war bad?
If tariffs are imposed on a range of goods globally, they cost consumers more to buy — hitting them in the pocket and driving up inflation.
Higher inflation leads to higher interest rates, so the cost of mortgages and borrowing goes up.
Even if Britain is itself spared tariffs, it will still be hit by the economic fallout.
Starmer in threat call
THE Prime Minister last night urged European allies to put a ring of steel around critical infrastructure being targeted by the Russians.
Sir Keir Starmer used a Brussels dinner to rally leaders to ramp up defence cooperation around vital areas like underwater cables.
He said: “We need to deepen cooperation to protect ourselves from state threats and sabotage, including on subsea infrastructure.”
The PM pushed for more tech research so Europe can compete in modern wars.
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