5 days Ago By Chris Samuel,Claire Anderson
A key advisor to Trump has cautioned British Prime Minister Sir Keir Starmer that if the UK wants to secure a long-awaited trade deal with the US, it should prioritize strengthening ties with Washington over pursuing closer relations with the "socialist" European Union. Despite the elusive nature of an agreement during Joe Biden 's presidency, some believe Trump's resounding victory in the US election could revive negotiations . However, Trump's economic advisor, Stephen Moore, revealed to The Times revealed that the president-elect is committed to imposing significant tariffs on America's trading partners to boost employment and industry, which has caused unease among major economies.
Moore warned that if the UK Labour government continues to seek a closer trading relationship with Brussels, as part of Sir Keir's efforts to "reset" relations with EU leaders, it could create another hurdle for a UK-US deal. In an interview with The Times from Trump's Mar-a-Lago estate in Florida , Moore stated: "I've always said that Britain has to decide - do you want to go towards the European socialist model or do you want to go towards the US free market?" He noted that the UK appears to be shifting towards the European model, which could diminish US interest in a free trade deal: "Lately it seems like they are shifting more in a European model and so if that's the case I think we'd be less interested in having [a free trade deal]". Moore expressed hope that the UK will "move towards freedom but that doesn't seem to be the case given the budget that they just came out with in London", but expressed concerns given the recent budget announced in London.
Moore expressed that a deal would benefit both nations, asserting that the US has its closest European relationship with Britain. "I've always been in favour of a free trade agreement with the Brits but for one reason or another it hasn't happened," he stated. "It would make sense to me .
.. I think we do have a special relationship with the Brits more than we do with the Germans and the French and the rest of Europe.
" If the UK fails to secure a deal, it could face severe tariffs along with other European countries. The National Institute of Economic and Social Research warns that this could halve Britain's GDP growth and trigger an inflation rise of 3 to 4%. Economists at the University of Sussex's Centre for Inclusive Trade Policy (CITP) also predict a £22bn blow to exports if a blanket 20% tariff is imposed on all imports into the US.
Earlier this month, their analysis suggested that UK exports to the world could drop by more than 2.6% due to decreased trade with the US and subsequent effects on the global economy. Chancellor Rachel Reeves maintains that the Labour government aims to enhance trade links with the US and China, as well as improve Britain's economic relationship with the bloc.
"We will not be reversing Brexit or re-entering the single market or customs union, but we must reset our relationship," she declared. While en route to the COP29 climate summit in Azerbaijan this week, the Prime Minister dismissed the idea that the UK could become embroiled in a trade war between the EU and the US. He stated: "I want good relations with all of our allies, that's really important - whether that's the EU or the US," according to Politico.
"Obviously European countries are our nearest trading partners and we have got a long shared history," he acknowledged, referencing the two world wars that have marked the continent's past. "But equally the special relationship with the U.S.
was forged in difficult circumstances, it's hugely important to the U.K. I want to ensure we've got good relations with all of our important allies, and that includes the EU and the U.
S," he further elaborated..
