No nation can escape the ripple effects of Donald Trump’s forceful trade policies. The sweeping tariffs on aluminum and steel touch everyone, creating a wave of uncertainty and volatility. Yet, Britain finds itself in a fortunate position, not being a direct target of these aggressive actions.
Unlike Mexico and Canada, the UK does not face border grievances from Mr. Trump. The balance of trade between the US and the UK is fairly even, sparing Britain from being tagged as one of those countries accused of exploiting American markets through what the White House perceives as trade imbalances—acts the administration believes warrant tariffs as payback.
Interestingly, the European Union finds itself heavily criticized by the US for these imbalances, and in the short-run, Brexit offers the UK a bit of a shield from Trump’s anger. However, this does not signal an opportunity. Trump’s support for Brexit stems from its ability to weaken the EU and render the UK more susceptible to economic influence.
British Eurosceptics often hailed a potential US-UK trade agreement as a major win, yet they grossly overestimated the benefits and severely underestimated the costs associated with leaving the European single market.
Despite intentions, several pro-Brexit Conservative leaders have struggled to finalize a wide-ranging trade deal with the US. Campaign promises faced the harsh reality of tough negotiations. The US, with its vast economy, drives hard bargains. British shoppers remain skeptical of imports like American chlorinated chicken or hormone-treated beef, fearing the consequences for local agriculture. And that’s just a small part of discussions, which could largely require the UK to accept American standards and goods on American terms.
It isn’t just about physical goods. From Trump’s perspective, any hindrance to US businesses abroad is an affront, including regulations that challenge the prerogatives of American tech companies.
For example, any UK regulation on digital tech that displeases Trump’s tech allies—such as the Online Safety Act—can attract the president’s displeasure.
Interestingly, Sir Keir Starmer has skillfully managed relations with the current US administration, earning warm receptions in Washington. However, maintaining harmony shouldn’t be confused with having real influence.
The prime minister aspires to reinstate the UK as a strategic bridge between Europe and the US, reminiscent of pre-Brexit times. But bridging is not on Trump’s agenda. He views Brussels as the heart of an economic scheme counter to American interests.
As Sir Keir reaches the negotiation table with Washington, he faces a stark choice: submit or resist. He believes in finding a middle ground between Brussels and Washington, but the road ahead demands a decision. Ultimately, the UK’s economic and strategic priorities are likely to align more closely with European interests.
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