(qlmbusinessnews.com . Tues 4th Feb, 2025) London, UK —
UK Balances Relations with US and EU Amidst Trade Tensions, Says Starmer
Prime Minister Sir Keir Starmer has emphasised that the UK will not choose between maintaining strong ties with the United States and forging closer links with the European Union, as trade tensions with Washington escalate.
Sir Keir's remarks came after US President Donald Trump imposed 25% tariffs on Canada and Mexico and threatened similar action against the EU. However, Trump suggested a trade deal with the UK could be negotiated separately.
Speaking at a press conference in Brussels, Sir Keir highlighted the importance of both relationships. “That isn't new for me. I think it's always been the case and will continue for many years to come,” he noted.
Defence and Security at Centre Stage
Sir Keir's visit to Brussels focused on strengthening defence and security cooperation, with discussions including Nato Secretary General Mark Rutte. He reiterated the UK's commitment to increasing defence spending to 2.5% of GDP, up from the current 2.3%.
“We must not only sustain but continue to increase our support for Ukraine to ensure it can negotiate from a position of strength,” Rutte said during the talks.
Nato's guideline for member nations is to allocate at least 2% of their GDP to defence. However, only 23 out of 32 member countries currently meet this target.
Trade Risks Amid US Tariff Threats
Starmer's push to reset UK-EU relations on trade and cooperation may risk angering the United States. Conversely, aligning more closely with Washington could provoke objections from European leaders.
Despite concerns, Downing Street defended the UK's trade ties with the US, highlighting a balanced relationship worth around £300bn annually and £1.2tn in mutual investments.
“We’ve had constructive early conversations with President Trump, and we believe this relationship benefits both sides of the Atlantic,” said a government spokesperson.
Analysts have warned that the UK could face a potential £22bn export loss if the US imposes a blanket 20% tariff on all imports. Top UK exports to the US include vehicles, pharmaceutical products, and mechanical power generators.
Global Reactions and Retaliatory Moves
Following Trump's tariff announcement, European and Asian stock markets declined, with car manufacturers hit hardest. Canada responded immediately with 25% tariffs, while Mexico negotiated a deal to delay the measures by agreeing to deploy 10,000 troops to combat drug trafficking.
French President Emmanuel Macron warned that the EU would react decisively if its interests were threatened. “If EU interests are attacked, we must make ourselves respected,” he said.
The EU's foreign policy chief, Kaja Kallas, highlighted the dangers of trade wars, warning: “There are no winners in trade wars. The only beneficiary would be China.”
Sir Ed Davey, leader of the Liberal Democrats, accused Trump of behaving like a “playground bully” and urged the UK government to stand united with Commonwealth and European allies.
Meanwhile, Trump hinted that a trade resolution with the UK was possible. “The UK is out of line, but I'm sure that one can be worked out,” he stated, praising recent discussions with Starmer.
As Brexit tensions ease, the UK is keen to negotiate mutual recognition for professional qualifications, better mobility for touring musicians, and relaxed restrictions on food and animal product trade with the EU.
However, critics, including the Conservatives, have accused Sir Keir's government of “reopening divisions of the past” and attempting to draw the UK back into EU structures.
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