Sir Keir Starmer should be prioritising the UK’s relationship with the US rather than the EU, the shadow business secretary has said.
Andrew Griffith, a former Conservative minister, said the prime minister – who is heading to Brussels on Monday for talks with EU leaders – “should be rediverting his plane tomorrow” to Washington DC”.
Speaking on Sky’s Sunday Morning With Trevor Phillips, Mr Griffith said the UK economy needed “all the help it can get at the moment” as he criticised the tax increases in the chancellor’s budget and declining business confidence.
Overnight President Trump imposed tariffs on Mexico and Canada – prompting fears that he could do the same with the UK and jeopardise Rachel Reeves’ mission to grow the economy.
Mr Trump declared an economic emergency in order to place duties of 25% on goods from Mexico and Canada, and 10% on all imports from China.
The tariffs also include a mechanism to escalate the rates if the countries retaliate – which Canada and Mexico did overnight.
In response to Canada’s retaliation, Mr Trump went further by threatening that the neighbouring country should become “our cherished 51st state”.
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Mr Griffith told Sky News there was “a lot of jeopardy” for the UK “if the world goes into this era of increasing tariffs” and that necessitated moving closer to the US.
“The UK depends upon free trade, we don’t run particular trade deficits with the United States but, clearly, our economy needs all the help it can get at the moment after this government has come in, they’ve destroyed confidence, put up taxes, they’re proposing lots of extra red tape,” he said.
“So, the economy needs help and one of the big opportunities for the UK right now would be to get much closer to the US, our biggest trading partner.
“We have a trade deal with the European Union already, so, alongside that, a trade deal with the US would be a big win.”
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The Labour government has long sought to reset the UK’s relationship with the EU in order to tackle problems such as small boat crossings in the Channel.
As well as travelling to Brussels on Monday, Sir Keir is also hosting German Chancellor Olaf Scholz at his Chequers country residence today.
Speaking to reporters at Chequers, Sir Keir said he had been “very clear” that while he does want a reset of the relationship between the UK and EU, “that does not involve a return to the EU”.
“We had a referendum here on that and that matter is settled, but I do want to see a close relationship on defence and security, on energy, on trade and our economy, and that is what we’re working on and I think that is certainly in the UK’s best interests,” he said.
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His words were echoed by Yvette Cooper, the home secretary, who said the UK wanted “stronger relationships with the US” and the European Union.
She admitted that the tariffs Mr Trump has imposed against Canada, Mexico and China risked having a “really damaging impact” on the global economy.
“Well, tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see,” she told the BBC’s Sunday With Laura Kuenssberg.
“The focus for Johnny Reynolds, our business and trade secretary, is on building trade links and better trading relationships, and removing barriers to trade, with the US, and also with other European countries and with countries right across the world.
“We want to reduce the barriers to trade, make it easier for businesses.”
