Trump claims UK ‘out of line’ as he threatens to expand tariffs to Europe

The looming prospect of a trade war with the US threatens to overshadow Prime Minister Sir Keir Starmer’s meeting with EU chiefs after Donald Trump claimed the UK is “out of line”.

In comments overnight, the US president suggested he is poised to expand his tariff regime to both the UK and the EU, but added that he thinks a deal can be done with Britain.

Asked by the BBC early on Monday if he will 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.”

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

But the US president said tariffs will “definitely” be placed on goods from the EU, saying America’s trade deficit with the bloc is “an atrocity” that means “they take almost nothing and we take everything from them”.

Face-off

UK ministers have previously suggested the UK could avoid US tariffs because America does not have a trade deficit with Britain.

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.

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.”

On Monday, minister Catherine McKinnell told Times Radio the UK has “every reason to look forward to a positive future with the United States and trade”.

Mr Trump 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 the US president’s actions, sparking fears of a global trade war.

Burden

Mr Trump’s comments are likely to overshadow Sir Keir’s visit to Brussels on Monday, when he is expected to urge all 27 EU leaders to bear down on Russian President Vladimir Putin as he continues efforts to reset Britain’s relationship with the bloc.

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 defence-focused visit will also see Sir Keir meet Nato secretary-general Mark Rutte at the alliance’s headquarters.

But this too could be overshadowed by comments from the US given Mr Trump’s remarks since taking office claiming he wants to annexe Greenland, currently the territory of Nato ally Denmark, and make Canada the 51st state of America.

“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.”

Liberal Democrat leader Sir Ed Davey has called on Sir Keir to begin talks on rejoining the EU customs union as a bulwark against future US tariffs.

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