Kerr Starmer is under increasing pressure from the United Kingdom and European Union figures to take a more strict position against Donald Trump, as fears have escalated that the US President is preparing to impose a comprehensive tariff on British exports – a step that can raise a global trade war and severely harm the UK economy.
British officials in London and Washington are racing to persuade the White House to soften his approach before Trump called “Tahrir Day” on Wednesday. The United States has already announced 25 percent of fees on imported cars, steel and aluminum, and is now aiming at more revenge definitions on countries – including the UK – which imposes VAT on US exports.
The budget responsibility office warned last week that an increase of 20 percent in the customs tariff between the United States and other commercial countries could reduce the GDP in the United Kingdom by 1 percent and wipe a 9.9 billion pounds of financial room that Chancellor Rachel Reeves regained in its spring statement.
While Starmer has yet been cautious – pending the full scope of American measures before deciding how to respond – calls grow for a more firm approach. Government sources say that the leader of the Labor Party is ready to “act in the national interest” if the United Kingdom is severely beaten, but also indicated that it may avoid immediate revenge to maintain the hopes of a trade agreement in the United Kingdom in the future.
Critics, however, say the strategy risks weakness. The former UK Ambassador to Washington, Lord Kim Darush, warned that failure to decline decisively may encourage Trump to use the customs tariff repeatedly as a political lean. Starmer urged to follow Canadian Prime Minister Mark Carney, who took a public position against the American customs tariff and witnessed an increase in approval categories.
“The definitions are (Trump) the multi -purpose influence mechanism,” said Daroush. “If they see them working, it will use them again and again. The UK should be careful to give it an easy victory.”
It seems that Carney's strong response – including a warning that Canada will discuss its definitions – led to softening in a tone, as both leaders described a phone call on Friday as “very constructive”.
Joao Val de Almeida, the former European Union ambassador to both the United Kingdom and the United States, said Starmer should “condemn the tariff” at least and extend its use as a forced diplomatic tool. “They are bad for everyone,” he said.
Despite the broader Trump's business schedule, some analysts believe that the UK has escaped from the harshest measures, as it was reported that the former president sees the European Union as a more hostile commercial partner. However, the main industries in the UK – including cars and steel – remain at risk.
The general mood looks dark. A new business poll found that only 11 percent of the UK voters expect the economy to improve for the next 12 months, as 61 percent said it would get worse. Only 15 percent believes that the UK economy works better than the United States, and only 9 percent believes that it is superior to China.
The Starmer Budget Law – between defending the UK industries and preserving commercial channels with an American president – his first year in office. But with the global markets closely monitoring the British fair on the edge of the abyss, the diplomacy window is closed quickly.
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