The threat of a global trade war is set to overshadow Keir Starmer’s meeting with EU leaders on Monday after Donald Trump said the UK is “out of line”.
The US president suggested on Monday that he could impose further tariffs on both the UK and the EU, but added that he thinks a deal can be done with Britain.
Speaking to the BBC, Trump said: “The UK is out of line, but I’m sure that one… I think that one can be worked out.”
“But the European Union, it’s an atrocity what they’ve done.”
Trump also said tariffs will “definitely” be placed on goods from the EU, as the trade bloc “take almost nothing and we take everything from them”.
EU officials are said to be preparing for potential US tariffs, with bloc representatives confident about the prospect of a face-off with America, the Telegraph reports.
Trump also said discussions with Starmer had “been very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”
UK ministers have previously suggested the UK could avoid US tariffs because America does not have a trade deficit with Britain.
But Starmer was more cautious when asked about Trump’s actions, telling reporters on Sunday: “It is early days. What I want to see is strong trading relations.”
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.”
The prime minister will call on Europe to take a tougher stance on Vladimir Putin’s Russia when he meets the heads of the 27 EU governments on Monday, as he works to rebuild Britain’s ties with the trade bloc.
The 78-year-old president has announced he will impose 25% trade taxes on goods coming from America’s nearest neighbours and largest trade partners – Canada and Mexico – and a 10% levy on Chinese goods.
All three nations have vowed to respond in kind to Trump’s actions, sparking fears of a global trade war.
Trump’s comments are likely to overshadow Starmer’s visit to Brussels on Monday, where will call on heads of 27 EU governments to take a tougher stance on Vladimir Putin’s Russia, as he works to rebuild Britain’s ties with the trade bloc.
Starmer will press the European Union in Belgium to take on a greater share of aid for Ukraine.
He will call on them to follow UK and US sanctions on Russia’s faltering economy and praise Trump’s threat of further restrictions, which he will claim has “rattled” President Putin.
The prime minister will also meet Nato secretary general Mark Rutte at the alliance’s headquarters in Brussels.
“I’m here to work with our European partners on keeping up the pressure, targeting the energy revenues and the companies supplying his missile factories to crush Putin’s war machine,” Starmer said.
“Because ultimately, alongside our military support, that is what will bring peace closer.”
The path towards a deal could start with the UK joining the Pan-Euro-Mediterranean (PEM) Convention, an agreement which allows for tariff-free movement of some goods across the continent, Lib Dem leader Sir Ed Davey said.
A full EU-UK customs union could be reached “at the latest by 2030”, he added.
Rejoining the customs union and single market are both “red lines” for the Labour Government, which is committed not to breach in its election manifesto.
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