President Trump has suggested the UK could be exempt from the tariffs he intends to impose on other European countries. He said a “deal” could be done despite claiming the UK is “out of line” on trade.
Trump has sparked a trade war after confirming tariffs will be introduced on goods coming from Mexico and Canada. The EU is also in his sights and the UK Government is nervous they might be next.
In comments overnight, the Republican president suggested he is poised to expand his tariff regime to both the UK and the EU, but added that he thinks a deal can be done with Britain.
Asked by the BBC early on Monday if he will target the UK with tariffs, Trump said: “UK is out of line but I’m sure that one… I think that one can be worked out.”
He also said discussions with Prime Minister Keir Starmer have been “very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”
But the US president said tariffs will “definitely” be placed on goods from the EU, saying America’s trade deficit with the bloc is “an atrocity”.
He claimed the EU takes “almost nothing” and “we take everything from them”.
UK ministers have previously suggested the UK could avoid US tariffs because America does not have a trade deficit with Britain. Scotland’s whisky industry is particularly concerned about higher costs in accessing the US market.
EU officials have started drawing up contingency plans for the threat of US tariffs, and representatives of the bloc are bullish about the prospect of a face-off with America.
Starmer was more cautious when asked about Trump’s actions, telling reporters on Sunday: “It is early days. What I want to see is strong trading relations.” The Prime Minister added: “In the discussions that I have had with President Trump, that is what we have centred on – a strong trading relationship.”
On Monday, minister Catherine McKinnell told Times Radio the UK has “every reason to look forward to a positive future with the United States and trade”. Trump has announced he will impose 25% trade taxes on goods coming from Canada and Mexico, as well as a 10% levy on Chinese goods.
To sign up to the Daily Record Politics newsletter, click here