Kate Whannel
Political journalist
Media in Pennsylvania
The United Kingdom and the United States have a “fair and balanced commercial relationship that benefits from both sides of the Atlantic,” said Downing Street.
The comments come after US President Donald Trump imposed commercial prices – taxes on goods imported from other countries – 25% on neighbors in Canada and Mexico, and threatened a similar action against the EU.
Asked about the United Kingdom, Trump told the BBC that the commercial relationship had been “offline” but could be “developed”.
Prime Minister Sir Keir Starmer is in Brussels for a meeting of EU leaders as part of an ongoing attempt to “reset” relations, in particular by exploring close links on trade.
However, if the United Kingdom forges stronger ties with the EU, it could anger the United States and risk the United Kingdom being caught in a trade war. Likewise, the EU could oppose Sir Keir with the United States rather than its European neighbors.
Asked about the relationship with the United States, No. 10 said the Prime Minister trusted Trump and stressed “a really constructive start of conversations” between the two men.
“We have a fair and balanced commercial relationship that benefits both sides of the Atlantic,” added the spokesperson.
“It’s worth about 300 billion pounds sterling and we are the biggest investors with each other, with 1.2 tn £ invested in the economies of the other.”
After the announcements of Trump prices during the weekend, the European and Asian stock markets fell, the car manufacturers particularly seriously struck.
The United Kingdom was also affected, but with a lower effect than the EU.
The analysis produced last year by the University of Sussex suggested that the United Kingdom could face 22 billion pounds sterling in exports if the United States imposed a tariff of 20% on all imports .
The main exported products of the United Kingdom in the United States include cars, medicinal and pharmaceutical products and mechanical energy generators.
Trump believes that the imposition of prices will help develop the American economy and protect jobs, but this could lead consumers to pay more, because prices are adapting to taxes.
Other leaders reacted angry with Canada immediately announcing 25%reprisal prices.
French President Emmanuel Macron said that if EU’s interests were attacked, the commercial block should “be respected and thus react”.
The head of the EU foreign policy, Kaja Kallas, said: “There are no winners in trade wars.”
If there is a trade war with the United States, “then the one that laughs on the side is China,” she added.
Speaking on Sunday, Sir Keir was more prudent than his EU allies, saying: “This is the beginning. What I want to see are strong trade relations.”
When asked if he would put prices on the United Kingdom, President Tump said: “The United Kingdom is offline, but I’m sure that one … I think this can be developed. “
He added that his discussions with the British Prime Minister had “been very kind” adding: “We had some meetings. We had many telephone calls. We agree very well.”
The United Kingdom wants to build stronger trade links with the United States but also the EU, which is part of the Prime Minister’s trip to Brussels.
The objective of the summit is the defense, but the United Kingdom also wishes to discuss the relaxation of restrictions on the trade in food products and products of animal origin and cooperation on the trading programs of emissions.
Mutual recognition of professional qualifications and the authorization of musicians on touring more easily are also areas of interest.
The EU wishes to set up a mobility program for young people, which would allow young citizens of the EU to study and work more easily in the United Kingdom and Vice Versa. However, the ministers have so far rejected the idea.
Downing Street has not excluded to join the Pan-Euro-Metiterranée convention, which would allow a trade without tariff on certain goods.
The conservatives accused the government “of trying to reopen the divisions of the past and to get back into the EU”.
On the other hand, the liberal democratic chief SIR Ed Davey urged the government to negotiate a new customs union of the United Kingdom, allowing a trade without a price between the two parties.