Sir Keir Starmer is set to appoint Lord Mandelson as the UK’s new ambassador to the US, the first political appointment to the position in nearly half a century.
The Prime Minister believes that Mandelson’s background in trade and extensive network of contacts will strengthen Britain’s position in what is expected to be a sensitive period for UK-US relations.
Donald Trump, the next US president, has threatened to impose sweeping tariffs on foreign imports, raising concerns about potential challenges to Britain. His allies warned that the UK may have to choose between a deal with the US and one with the “socialist” European Union. However, Sir Keir rejected the idea that a binary choice should be made.
Lord Mandelson, a veteran party figure and a close ally of Starmer’s chief of staff, Morgan MacSwiney, has the support of David Lammy, the foreign secretary. Mandelson was seen at the Foreign Ministry last week. His appointment represents an unusual political return, as he last held a government position 14 years ago during Gordon Brown’s prime ministership. He was previously Business Secretary and effectively served as Deputy Prime Minister, and also served as EU Trade Commissioner under Tony Blair – a role in which he played a key role in securing this new position in Washington.
One source described the decision as evidence of how seriously Starmer takes relations with the United States, and noted that Mandelson is “an important figure in his own right.”
Ms. Karen Pierce, the current ambassador, will remain in her position until the end of January, when President-elect Trump is inaugurated. Ms. Karen, who has built extensive connections with Republicans, helped secure a dinner meeting between Trump, Starmer and Lammy in November.
Mandelson’s selection comes after intense speculation about who would take on the role. David Miliband, Baroness Amos and Baroness Ashton of Upholland were all considered strong contenders.
Sir Keir is keen to strengthen relations with the Trump administration. Earlier this month, McSweeney met with Susie Wiles, the key strategist behind Trump’s re-election campaign, in the US. Although Trump and Starmer disagree politically, the US president-elect praised the UK leader as a “very nice guy” who was “very popular” before the election.
Despite these friendly words, tensions remain. During the campaign, Trump accused Labor of election interference after the party’s chief of operations revealed that 100 current and former staffers were helping Kamala Harris, then the Democratic nominee, on LinkedIn.
Mandelson had previously stressed the importance of directing a careful path between the European Union and the United States if Trump carries out his threat to impose comprehensive tariffs on imported goods. He said in a radio program published by The Times newspaper entitled “How to win the elections,” stressing that Britain should avoid having to choose between the two trading blocs.
Trump proposed imposing tariffs of up to 20% on all imports, with steeper duties of 60% on goods coming from China. The National Institute of Economic and Social Research has estimated that such measures would halve UK GDP growth, create a £21.5 billion hole in Rachel Reeves’ tax and spending plans, and push inflation up by 3 to 4 percentage points. .
Mandelson stresses that Britain cannot abandon its transatlantic relations, nor can it distance itself from the enormous European Union market. However, he warned against returning to outdated notions of free trade agreements, arguing that future deals should focus on modern aspects of trade: “We have to look forward to a 21st century set of trade arrangements, which we have to do more of.” . “With clicks and portals more than brick and mortar,” he said.
If Trump goes ahead with tariffs, the European Union is expected to respond with retaliatory measures against American exports such as bourbon whisky, Levi’s jeans, and Harley Davidson motorcycles. Although UK officials have contingency plans in place, ministers are concerned that a protectionist stance could lead to a more severe response from the US. They also suspect that the new president may tone down his tariff threats to avoid stoking inflation at home, likely targeting only specific sectors — such as steel, aluminium, technology and automobiles — rather than implementing broad tariffs.
It is worth noting that two-thirds of the UK’s £188 billion annual exports to the US are in services rather than goods, giving Britain a degree of flexibility in the face of potential trade disruptions.
By entrusting the ambassadorship to Mandelson, Starmer is sending a clear signal that the UK aims to navigate these uncertain waters with diplomatic skill, informed experience, and the hope of balancing the country’s global interests.