The UK could be set to dodge US tariffs with work to begin on a new US-UK trade deal, it was revealed during Sir Keir Starmer’s visit to US President Donald Trump.
The Prime Minister flew to the States yesterday for a highly anticipated first meeting with President Trump since he reentered the White House in January.
And the visit, which came amid uncertainty over peace in Ukraine and the impact on European security, saw Trump outline his hopes for a “great trade agreement” with the UK.
Following discussions with Sir Keir, the President told a press conference on Thursday: “We’re going to have a great trade agreement, one way or another.
“We’re going to end up with a very good trade agreement for both countries and we are working on that as we speak.”
He added: “I think we’ll have something, maybe in terms of possibilities, agreed very shortly.
“We’ll see if we can do something pretty quickly. But we’re going to make some great trade agreements with the UK and with the Prime Minister, and it’ll happen very quickly.”
Asked if Starmer, who he also described as a “tough negotiator” and “terrific in our discussions” had convinced him not to impose trade tariffs on the UK, Trump said: “He tried.”
US tariffs on British steel imports are looming and the US president had previously hinted he could target the UK further, as well as suggesting he could impose 25 per cent tariffs on goods from the European Union (EU).
Trump said: “He was working hard, I’ll tell you that. He earned whatever the hell they pay him over there, but he tried.
“I think there’s a very good chance that in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary. We’ll see.”
The US President also told reporters that he uses tariffs to “even things up” on trade, adding: “We’ve been treated badly by a lot, we’re using tariffs and… it’s not about inflation, it’s about fairness, and the inflation for us has not existed. I don’t think it’s going to exist.”
But Starmer emphasised that the UK-US trade relationship is “fair”, as he signalled he hoped not to see tariffs imposed on Britain’s economy.
The Prime Minister said: “We have $1.5 trillion invested in each other’s economies, creating over 2.5m jobs across both economies, our trading relationship is not just strong. It’s fair, balanced and reciprocal.”
And Starmer earlier stressed: “Mr President, it’s no secret we’re from different political traditions, but there’s a lot that we have in common. We believe it’s not taking part that counts. What counts is winning.
“If you don’t win, you don’t deliver, and we’re determined to deliver for the working people of Britain and America who want and deserve to see their lives improve.
“So, we’re both in a hurry to get things done, and that’s what the UK and US do when we work together: we win and we get things done.”
Starmer also revealed the UK would work with the US on a new technology-focused economic deal. Speaking of the countries’ hopes for artificial intelligence (AI), he said: “Instead of over-regulating new technologies, we’re seizing the opportunities they offer.”
He added: “We’ve decided today to go further to begin work on a new economic deal with advanced technology at its core.
“Look, our two nations together shaped the great technological innovations of the last century. We have a chance now to do the same for the 21st century.
“I mean, artificial intelligence could cure cancer. That could be a moonshot for our age, and that’s how we’ll keep delivering for our people.”
Following his comments on the EU, Trump also said he will “have to take a look” at whether there will be any trade sanctions on the UK.
The President said: “I can say that … we’re here for a different reason – we’re talking about a very different place. I have investments there, I own Turnberry, I own Aberdeen, and I own a great place called Doonbeg in Ireland. So, I have a great warm spot for your country.”
Starmer then said: “And our trade, obviously, is fair and balanced and, in fact, you’ve got a bit of surplus. So, we’re in a different position there – and obviously we contributed hugely in relation to Ukraine.”
Trump said: “It’s going to work out.” Asked if there will not be any sanctions on the UK, Mr Trump said: “Well, I have to take a look.”
Elsewhere, the US President Donald said the Chagos Islands deal did not “sound bad” when he suggested the US may accept the deal.
Answering questions in the White House, the US President said: “We’re going to have some discussions about that very soon and I have a feeling it’s going to work out very well.
“They’re talking about a very long-term, powerful lease, a very strong lease, about 140 years, actually. It’s a long time. I think we’ll be inclined to go along with your country.”
He added: “It’s a little bit early, we have to yet be given the details, but it doesn’t sound bad.”
By City AM
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