Threat of Trump trade war looms over Starmer’s meeting with EU leaders

Sir Keir Starmer’s meeting with EU chiefs threatens to be overshadowed by the threat of an international trade war as countries hit by Donald Trump’s tariffs vow retaliation.

The Prime Minister will urge Europe to bear down on Vladimir Putin’s Russia when he meets the heads of the 27 EU governments on Monday, as he continues efforts to reset Britain’s relationship with the trade bloc.

But the gathering, meant to focus on defence co-operation, is likely to be preoccupied with news from across the Atlantic.

The US president has announced he will impose 25% trade taxes on goods coming from America’s nearest neighbours and largest trade partners – Canada and Mexico – as well as a 10% levy on Chinese goods.

All three nations have vowed to respond in kind to Mr Trump’s actions, sparking fears of a global trade war.

Burden

Sir Keir will urge EU countries to shoulder more of the burden of aid for Ukraine at the meeting in Belgium.

He will call on them to follow UK and US sanctions on Russia’s faltering economy and praise Mr 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,” Sir Keir said.

“Because ultimately, alongside our military support, that is what will bring peace closer.”

EU officials have started drawing up contingency plans for the threat of US tariffs, and representatives of the bloc are bullish about the prospect of a face-off with America, the Telegraph reported.

Trading

But Sir Keir was more cautious when asked about Mr 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.”

Asked by the BBC early on Monday if he would target the UK with tariffs, Mr Trump said: “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.”

Mr Trump also said discussions with Sir Keir had “been very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”

The Liberal Democrats urged Sir Keir to start talks for a customs union with the EU as a bulwark against future American tariffs.

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.

The Prime Minister said Brexit was “settled”, and he was focusing on “a closer relationship on defence and security, on energy, on trade and our economy”.

Shadow business secretary Andrew Griffith told Sky News that Sir Keir “should be rediverting his plane” to Washington DC, as the UK already had a trade deal with the EU, but not with America.

The Conservatives have set the Prime Minister five “tests” over his approach to Brexit, and claim that if he fails to meet them it will prove he is willing to “undo” the settlement the Tories reached while in power.

Among the commitments the Tories demanded are for the UK to have continued freedoms over negotiating trade deals, and control of its borders outside the single market.

Ministers have previously said they do not believe the US will impose tariffs on the UK as it does not have a trade deficit with Britain.

Sir Keir has previously insisted the UK does not need to make a choice between closer ties with Europe or the US.