UK (Parliament Politics Magazine) – Nobel economist Joseph Stiglitz criticizes the UK-US trade deal, calling it ineffective and claiming it benefits Trump’s strategy, not the UK’s economy.
As reported by Sky News, Joseph Stiglitz called the UK-US trade deal “worthless,” arguing it holds no real value and isn’t a significant achievement.
Joseph Stiglitz’s stance on the UK-US trade deal
Referring to the trade agreement Joseph Stiglitz said he “wouldn’t view [the deal] as a great achievement.”
He stated,
“Any agreement with Trump isn’t worth the paper it’s written on,” he said, pointing out the president signed deals with Canada and Mexico during his first term – only to slap them with hiked tariffs within days of returning to the White House this year.”
Mr Stiglitz said,
“I would view it as playing into Trump’s strategy,”
adding,
“His strategy is divide and conquer, go after the weakest countries, and sort of put the stronger countries in the back.”
In response to whether Britain should have prioritized its ties with the EU over the US, he firmly replied, “Very much so.”
The Nobel economist added,
“My view is that if you had worked with the EU to get a good deal, you could have done better than what you’ve done. If it turns out, in the end, when you work it all out, Trump is unhappy, he’ll run. If he’s unhappy, I pray for you.”
UK and US trade deal
Earlier this week, Sir Keir Starmer and Donald Trump revealed the “first-of-a-kind” agreement through a live televised phone call, which the British Prime Minister claimed would protect thousands of UK jobs.
The urgency behind finalizing a trade deal was ignited by President Trump’s “Liberation Day” announcement last month. He imposed import tariffs on several countries, triggering a global market downturn.
The UK-US trade deal includes reduced tariffs on British car and steel exports to the US. Britain has also agreed to remove the tariff on ethanol used in beer production.
The deal also introduces a new agricultural exchange, providing US farmers access to the UK for the first time. However, UK food standards on imports remain unchanged.
Keir Starmer’s views on the UK-US trade deal
Sir Keir Starmer described the deal as a “fantastic, historic day,” marking the first signed by the White House since Trump’s global tariffs last month.
He highlighted that the agreement protected jobs in industries like car and steel sectors, which were previously under threat.
Mr Starmer said,
“I know people along the way were urging me to walk away, to descend in a different kind of relationship. We didn’t. We did the hard yards. We stayed in the room. I’m really pleased to say to the workforce here and through them to the country, how important I think this deal is.”
He stated he had “not at all” been pressured into the deal but admitted he “didn’t know the exact day” it would be concluded.
The Labour leader added,
“I wouldn’t be having my phone call with President Trump halfway through the second half of the Arsenal v PSG game had I planned it better. That’s the way it turned out and that’s the discussion we were having late last night about how we proceeded with this deal.”
What did John Denton say about US tariffs and industries not covered by the UK-US trade deal?
John Denton, Secretary General of the International Chamber of Commerce, stated,
“The reality is that US tariffs on UK exports remain significantly higher than they were at the start of the year.”
He pointed out that industries like pharmaceuticals, which are not covered by the agreement, face an unclear future.
Kemi Badenoch and Andrew Griffith views on the UK-US trade deal
Kemi Badenoch, leader of the Conservative Party, slammed the deal, accusing Trump of “shafting” the UK.
She added,
“When Labour negotiates, Britain loses. We cut our tariffs – America tripled theirs. Keir Starmer called this ‘historic.’ It’s not historic, we’ve just been shafted!”
Andrew Griffith, the shadow trade secretary, said the tariff reduction would “be welcomed by exporting businesses.”
He stated,
“Conservatives do welcome the news of a reduction in selected tariffs on things like automotive exports and steel today. Any reduction is better than no reduction.”
Mr Griffith added,
“From the little the Government has shared, it’s clear that the deal doesn’t go anything like far enough. It’s a Diet Coke deal, not the real thing. It’s not the comprehensive free trade agreement that a true plan for growth requires.”
What did Labour say about the UK-US trade deal?
A Labour spokesperson stated,
“Keir Starmer’s Labour Government has secured a historic UK-US trade deal that will boost British business and save British jobs.”
They said,
“Kemi Badenoch can’t even agree a position with her own shadow cabinet. It’s no wonder she so badly failed as Conservative trade secretary,
adding,
“While Badenoch fights her top team and Reform, Labour will continue fighting to secure British jobs and support British workers, making people better off through our plan for change.”