London (Parliament Politics Magzine) – Trump’s expected focus on the EU over the UK in trade matters may lessen Brexit-related tariff concerns.
A possible trade war with the US may not hit Britain as hard as feared, according to a former political appointee in Donald Trump’s administration. The president-elect, they argue, will prioritize targeting the European Union rather than Britain, showing his desire for a “successful Brexit.”
Will Trump prioritize the UK over the EU?
Peggy Grande, a former political appointee for Donald Trump, told *The Independent* that Trump is likely to offer the UK a “preferential trade deal,” with tariffs impacting the EU more heavily. Grande said Trump “believes in the special relationship” between the US and the UK, adding that tariffs “will more greatly affect the EU than the UK.”
How could global trade be affected?
Concerns of a global trade war have risen since Trump pledged to impose a 10% tariff on all US imports and up to 60% and 100% for goods from China and Mexico. However, Grande, who previously served as Ronald Reagan’s executive assistant, noted that Trump holds a deep appreciation for the UK and supports a successful Brexit, potentially lessening tariff impacts on British imports.
Will the US-UK free trade agreement be revived?
Grande suggested that Trump may return to his efforts for a US-UK free trade agreement, initiated during his first term. She emphasized the potential for collaboration between the US and UK to place pressure on China, which she believes could benefit both nations.
Will the UK push back against tariffs?
Meanwhile, former British Ambassador to the US, Kim Darroch, warned that Trump’s tariff threats could lead to conflict with UK leadership. Chancellor Rachel Reeves, expected to highlight free trade in an upcoming Mansion House address, is likely to advocate for open trade as vital to the UK economy, underscoring the importance of international partnerships for economic stability.
Could free trade spur UK economic growth?
Reeves plans to present a post-budget growth plan, focusing on the role of global trade in boosting the economy. Her speech will call for continued collaboration with Europe, the Middle East, Asia, and the US to foster resilience in times of crisis and maintain economic growth.