Political reporter
PA MediaThe UK and US have a “truthful and balanced buying and selling relationship which advantages either side of the Atlantic”, Downing Road has stated.
The feedback come after US President Donald Trump imposed commerce tariffs – taxes on items imported from different international locations – of 25% on neighbours Canada and Mexico, and threatened comparable motion in opposition to the EU.
Requested in regards to the UK, Trump informed the BBC the commerce relationship has been “out of line” however may very well be “labored out”.
Prime Minister Sir Keir Starmer is in Brussels for a gathering of EU leaders as a part of an ongoing bid to “reset” relations, together with exploring shut ties on commerce.
Nonetheless, if the UK forges stronger hyperlinks with the EU, that might anger the US and danger the UK getting caught up in a commerce struggle. Equally the EU may object to Sir Keir siding with the US relatively than its European neighbours.
Requested in regards to the relationship with the US, No 10 stated the prime minister trusts Trump and pointed to “a extremely constructive early set of conversations” between the 2 males.
“We have a good and balanced buying and selling relationship which advantages either side of the Atlantic,” the spokesman added.
“It is value round £300bn and we’re one another’s single largest buyers, with £1.2tn invested in one another’s economies.”
Following Trump’s tariffs bulletins over the weekend, European and Asian inventory markets fell, with automotive producers significantly badly hit.
The UK was additionally impacted however to a lesser impact than the EU.
Evaluation produced final 12 months by the College of Sussex advised the the UK may face a £22bn hit to exports if the US imposed a blanket 20% tariff on all imports.
The highest items exported from the UK to the US embody vehicles, medicinal and pharmaceutical merchandise and mechanical energy mills.
Trump believes imposing tariffs will assist develop the US economic system and defend jobs, nevertheless it may result in shoppers paying extra as costs regulate to the taxes.
Different leaders reacted angrily with Canada instantly saying retaliatory tariffs of 25%.
French President Emmanuel Macron stated that if EU pursuits had been attacked, the buying and selling bloc must “make itself revered and thus react”.
EU overseas coverage chief Kaja Kallas stated: “There aren’t any winners in commerce wars.”
If there is a commerce struggle with the US, “then the one laughing on the facet is China”, she added.
Talking on Sunday, Sir Keir was extra cautious than his EU allies, saying: “It’s early days. What I wish to see is powerful buying and selling relations.”
Requested if he would put tariffs on the UK, President Tump stated: “UK is out of line however I am positive that one… I feel that one could be labored out.”
He added that his discussions with the British prime minister had “been very good” including: “We have had a few conferences. We have had quite a few telephone calls. We’re getting alongside very nicely.”
The UK desires to construct stronger commerce hyperlinks with the US but additionally the EU which is a part of the motivation for the prime minister’s journey to Brussels.
The main focus of the summit is defence, however the UK additionally desires to debate easing restrictions on the commerce of meals and animal merchandise and cooperation on emission buying and selling schemes.
The mutual recognition {of professional} {qualifications} and permitting touring musicians to journey extra simply are additionally areas of curiosity.
The EU is eager to arrange a youth mobility scheme, which might make it simpler for younger EU residents to review and work within the UK and vice versa. Nonetheless, ministers have thus far rejected the concept.
Downing Road has not dominated out becoming a member of the Pan-Euro-Mediterranean Conference, which might permit tariff-free commerce on some items.
The Conservatives have accused the federal government of “making an attempt to reopen the divisions of the previous and edge us again into the EU”.
In distinction, Liberal Democrat chief Sir Ed Davey has been urging the federal government to barter a brand new UK-EU customs union, permitting tariff-free commerce between the 2 sides.