Sir Keir Starmer needs to be prioritising the UK’s relationship with the US somewhat than the EU, the shadow enterprise secretary has mentioned.
Andrew Griffith, a former Conservative minister, mentioned 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 mentioned 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 funds 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.
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Mr Trump declared an financial emergency to be able 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 turn out to be “our cherished 51st state”.
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“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 mentioned.
“So, the financial system wants assist and one of many huge alternatives for the UK proper now can be to get a lot nearer to the US, our greatest buying and selling accomplice.
“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 authorities has lengthy sought to reset the UK’s relationship with the EU to be able to deal with issues resembling 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 right this moment.
Chatting with reporters at Chequers, Sir Keir mentioned 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 mentioned.
His phrases have been echoed by Yvette Cooper, the house secretary, who mentioned the UK needed “stronger relationships with the US” and the European Union.
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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 limitations to commerce, with the US, and likewise with different European nations and with nations proper internationally.
“We want to reduce the barriers to trade, make it easier for businesses.”
