Sir Keir Starmer must be prioritising the UK’s relationship with the US somewhat than the EU, the shadow enterprise secretary has stated.
Andrew Griffith, a former Conservative minister, stated the prime minister – who’s heading to Brussels on Monday for talks with EU leaders – “should be rediverting his plane tomorrow” to Washington DC”.
Talking on Sky’s Sunday Morning With Trevor Phillips, Mr Griffith stated the UK financial system wanted “all the help it can get at the moment” as he criticised the tax will increase within the chancellor’s finances and declining enterprise confidence.
In a single day President Trump imposed tariffs on Mexico and Canada – prompting fears that he might do the identical with the UK and jeopardise Rachel Reeves’ mission to develop the financial system.
Mr Trump declared an financial emergency with the intention to place duties of 25% on items from Mexico and Canada, and 10% on all imports from China.
The tariffs additionally embody a mechanism to escalate the charges if the nations retaliate – which Canada and Mexico did in a single day.
In response to Canada’s retaliation, Mr Trump went additional by threatening that the neighbouring nation ought to change into “our cherished 51st state”.
Evaluation:
PM’s dangerous reset should steadiness Trump menace
Mr Griffith advised Sky Information there was “a lot of jeopardy” for the UK “if the world goes into this era of increasing tariffs” and that necessitated transferring nearer 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 stated.
“So, the financial system wants assist and one of many large alternatives for the UK proper now can be to get a lot nearer to the US, our largest buying and selling associate.
“We have a trade deal with the European Union already, so, alongside that, a trade deal with the US would be a big win.”
The Labour authorities has lengthy sought to reset the UK’s relationship with the EU with the intention to sort out issues corresponding to small boat crossings within the Channel.
In addition to travelling to Brussels on Monday, Sir Keir can also be internet hosting German Chancellor Olaf Scholz at his Chequers nation residence in the present day.
Talking to reporters at Chequers, Sir Keir stated he had been “very clear” that whereas he does desire a reset of the connection 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 stated.
Learn extra:
The builder scarcity difficult Labour’s development plans
How Donald Trump’s tariffs might impression customers
His phrases had been echoed by Yvette Cooper, the house secretary, who stated the UK needed “stronger relationships with the US” and the European Union.
She admitted that the tariffs Mr Trump has imposed in opposition to Canada, Mexico and China risked having a “really damaging impact” on the worldwide financial system.
“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 advised the BBC’s Sunday With Laura Kuenssberg.
“The main target for Johnny Reynolds, our enterprise and commerce secretary, is on constructing commerce hyperlinks and higher buying and selling relationships, and eradicating obstacles to commerce, with the US, and in addition with different European nations and with nations proper internationally.
“We want to reduce the barriers to trade, make it easier for businesses.”