UK (Parliament Politics Magazine) – UK PM Sir Keir Starmer faces warnings from US President Donald Trump’s allies that his EU reset plan could risk a future US trade deal.
As reported by the Daily Express, senior US officials warn that Keir Starmer’s efforts to reset ties with the EU may complicate any future private talks with President Trump if he returns to power.
What did US Republicans say about the UK’s EU reset?
A Republican stated,
“We are keeping a close eye on developments in UK-EU trade, and have some concerns. These concerns extend up to certain Cabinet members and the president himself. Many of us are asking whether the United Kingdom really wants a trade deal with the USA or not.”
What did the Prosperity report reveal about UK-US trade?
A recent report warns that regulatory coordination between London and the EU would make UK exports to America more expensive. It also raises concerns that Britain’s chances of securing a full trade deal with Washington could be at risk. This comes despite the UK’s early agreement during Trump’s second term.
Under the Economic Prosperity Agreement, tariffs were scrapped on major UK exports including vehicles, engine parts, and steel. However, the deal includes a security clause; if ownership conditions tied to US national interests are not met, those duties will return.
The Prosperity Institute’s latest study, which relies on newly released figures, presents the most detailed review of UK-US trade to date. It stands as a comprehensive analysis of transatlantic commerce following the Economic Prosperity Deal.
Britain’s trade deal with the US allows market access for American beef and ethanol under a limited tariff-free quota. The agreement covers 13,000 tonnes of beef and 1.4 billion litres of ethanol, requiring all products to meet the food standards of the importing country.
What did Catherine McBride warn about the EU’s trade agenda?
The report author and economist Catherine McBride OBE stated,
“The EU is about to embark on a trade war with the US, and they want to ensure that we are once more under their sphere of influence.”
She said,
“But we should be under no illusion that the EU Reset, which encompasses agriculture, the EU Emissions Trading Scheme, and the Carbon Border Adjustment Mechanism, will place a future US-UK trade deal in jeopardy. It will add costs to US imports, prevent some products from entering, and threaten even existing trade with America.”
Ms McBride stated,
“The European Commission’s Demand Document gives the EU control over all of the UK’s agricultural and industrial imports. This is either via EU control of the UK’s food standards, animal welfare, pesticide regulations, organic regulations, food marketing standards, and its sanitary and phytosanitary regulations (SPS), or via control of the UK’s emissions trading scheme (ETS) and the UK’s Carbon Border Adjustment Mechanism (CBAM).”
She said,
“The EU’s CBAM currently covers imported steel, aluminium, cement, fertilisers, hydrogen, and electricity. The EU is also considering including maritime emissions from import transportation. All of these regulations will now be set by the EU, not by the UK’s elected government.”
Ms McBride
“So, despite voting to leave the EU in 2016, and despite none of the terrifying predictions about leaving the EU coming true, and despite the UK rolling over or improving all of the old EU trade deals and signing new trade deals with Australia, New Zealand, the CPTPP, India, and the US – trade deals that the EU does not have – the EU will now be able to control the trade the UK conducts with these countries.”
What did the latest UK-US trade figures reveal?
The US remained Britain’s largest trading partner in 2024, accounting for 16% of goods exports and 27% of service exports. However, the balanced trade figures masked a growing UK dependence on US fuel imports, including oil and natural gas, driven by net-zero energy policies.
The Office for National Statistics reports that the UK exported £137 billion in services to the US in 2024, its largest export market, while importing £61 billion in return.
What did Nigel Farage say about EU alignment and US trade?
Nigel Farage, the Reform UK leader, stated,
“If we are going to align with the European Union on food standards and veterinary standards, then we’re going to make life for America very difficult, maybe impossible.”
He added,
“It is a very, very silly thing to do in a world that is fast changing. What I prioritise is keeping our hands free. Long term, financially, America is a much bigger goal.”
Priti Patel’s views on the UK trade and the EU
Dame Priti Patel, the shadow foreign secretary, stated,
“It is thanks to the freedom and sovereignty this country regained from the EU that we have been able to negotiate trade deals with other countries.
She added,
“The Government should be prioritising securing a trade deal with one of the world’s largest economies, not cosying up with Brussels. The Conservatives will continue to hold them to account for this.”
What did Lord Frost say about the EU deal and US trade?
Lord Frost, Britain’s former Brexit negotiator, warned that the new agreement could jeopardise future trade talks with President Trump.
He added,
“We would be selling away our ability to set our rules for no real benefit, and meanwhile, making it more difficult to do FTAs [Free trade agreements] with the countries that we don’t have them with – notably America. It just makes no sense to me. The world has changed, and they can’t adjust their policy. That’s fundamentally what the problem is.”