Sir Keir Starmer today insisted he was not choosing the EU over the US after he travelled to Brussels to chase his Brexit ‘reset’.
The Prime Minister said both the transatlantic relationship with America and friendly ties with the EU were ‘very important’ to Britain.
‘We are not choosing between them,’ said Sir Keir, despite fears his cosying up to Brussels could incur the wrath of Donald Trump.
He spoke after the US President sparked global panic by declaring a trade war on America’s closest trading partners.
Mr Trump has announced sweeping new tariffs on all goods imported into America from China, Mexico and Canada.
He also threatened damaging trade levies on the EU, which he described as an ‘atrocity’, and said Britain was ‘out of line’.
But the US President offered some hope the UK could dodge tariffs by saying the issues could be ‘worked out’.
Sir Keir has been warned that moving closer to the EU could see Britain dragged into Mr Trump’s trade war.
Yet, speaking at a press conference this afternoon, the PM pushed back at suggestions he could water down his Brexit ‘reset’ in order to keep Mr Trump onside.
Sir Keir also lavished praise on the US President, saying Mr Trump had left Russian President Vladimir Putin ‘rattled’ since he returned to the White House last month.
Sir Keir Starmer insisted he was not choosing the EU over the US after he travelled to Brussels to chase his Brexit ‘reset’
The PM spoke after Donald Trump sparked global panic by declaring a trade war on America’s closest trading partners
Sir Keir also lavished praise on the US President, saying Mr Trump had left Russian President Vladimir Putin ‘rattled’ since he returned to the White House
Taking questions alongside NATO boss Mark Rutte after talks in Brussels, the PM said of UK-US and UK-EU ties: ‘I’ve always been clear that both are important to us.’
‘Both of these relationships are very important to us, we are not choosing between them,’ he added.
‘But that’s historically been the position of the UK for many, many decades now.’
SIr Keir was due to attend a dinner with the 27 EU leaders later on Monday, becoming the first PM to do so since Brexit.
The dinner – at the end of an informal EU summit – will form a major part of his efforts to ‘reset’ the UK’s post-Brexit relationship with the EU and develop closer ties across a number of areas.
‘Now, tonight is very much obviously about security and defence, where I do think there’s a very important discussion to be had about how we increase our security and defence work together in a very volatile world,’ the PM said.
‘Also, I will touch on the wider reset which goes beyond defence and security into the fields of energy, and into trade and the economy.’
Sir Keir said the UK will ‘stay resolute’ in its commitment to working with both the EU and the US because to do so is in the best interests of both Britain and global security.
‘It’s really important that we work with both and we don’t see it as an either-or,’ the PM said.
He added there is a ‘huge amount of trade between the US and the UK, as we have with the EU’.
Sir Keir said: ‘That’s why it’s important I always act in the national interest, the best interests of the UK, so we stay resolute in saying that it’s important we work with both sets of partners, particularly in this volatile time.’
The PM said it was ‘early days’ when it comes to talks on tariffs with Mr Trump.
But he added it was right to acknowledge the ‘pivotal’ role the US has had in supporting Ukraine in the face of Russia’s invasion.
The PM said he had ‘very productive discussions’ with Mr Rutte about how to ensure European security.
He said: ‘We must do all that we can to support Ukraine. President Trump has threatened more sanctions on Russia and it’s clear that that’s got Putin rattled.
‘We know that he’s worried about the state of the Russian economy.’
Sir Keir has been left walking a diplomatic tightrope as he tries to avoid choosing between improving Britain’s relations with the EU and the increasingly combative stance being taken by the US.
Mr Trump fuelled fears of a vicious global trade war as he confirmed he will be imposing levies on the EU.
The attack drew furious vows of retaliation from European leaders attending a summit in Brussels.
Stocks around the world have been diving on the intensifying action, with the FTSE 100 down over 100 points in early trading.
However, shares in Germany, France and Asia have been hit even harder.
In comments overnight, Mr Trump suggested that Britain is ‘out of line’ – but gave some hope to Sir Keir as he added that the issues could be ‘worked out’.
The Pound has been gaining ground on the euro as markets respond to the markedly different language.
The US dollar has been gaining ground against all currencies as investors flee for safety, and assume that higher inflation will mean interest rates staying elevated for longer in America.
Mr Trump has made no secret that he intends to use tariffs as a political tool, demanding concessions on areas such as immigration as well as trade.
Downing Street insisted it ‘trusts’ Mr Trump and wants to deepen the transatlantic relationship, describing it as ‘fair and balanced’.
The PM’s spokesman also stressed the UK supports ‘free trade’.
Sir Keir spoke after talks with NATO boss Mark Rutte at the alliance’s HQ in Brussels
Speaking at a press conference this afternoon, the PM pushed back at suggestions he could water down his Brexit ‘reset’ in order to keep Mr Trump onside
Despite Mr Trump’s more positive noises about the UK, the FTSE 100 plunged over 100 points in early trading on alarm about the wider impact
The Pound was down against the US dollar this morning, although it has been gaining against the euro
EU leaders preparing for the start of their summit in Brussels today
Emmanuel Macron and Slovenia’s Robert Golob at the informal EU leaders’ retreat today
German Chancellor Olaf Scholz with coffee at the summit today
Asked about the prospect of tariffs by the BBC overnight, Mr Trump said: ‘UK is out of line but I’m sure that one… I think that one can be worked out.’
Mr Trump said his discussions with Sir Keir so far have ‘been very nice’, adding: ‘We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.’
In contrast, the President said tariffs will ‘definitely’ be placed on goods from the EU, describing the US trade deficit with the bloc as ‘an atrocity’ that means ‘they take 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 deficit with Britain on trade in goods.
In Brussels, French president Emmanuel Macron told reporters: ‘If we are attacked in terms of trade, Europe – as a true power – will have to stand up for itself and therefore react.’
German leader Olaf Scholz said the EU must be prepared to ‘act.’
Poland’s Prime Minister Donald Tusk, who currently holds the EU’s rotating presidency, said a trade war would be ‘totally unnecessary and stupid’.
And the bloc’s foreign policy chief Kaja Kallas warned there are ‘no winners in trade wars’. ‘We need America, and America needs us as well,’ she said.
EU officials are thought to have already drawn up contingency plans for retaliating to US tariffs.
Sir Keir was cautious when asked about Mr Trump’s actions yesterday, telling reporters: ‘It is early days. What I want to see is strong trading relations.’
The PM added: ‘In the discussions that I have had with President Trump, that is what we have centred on – a strong trading relationship.’
Mr Trump has announced he will impose 25 per cent trade taxes on goods coming from America’s nearest neighbours and largest trade partners – Canada and Mexico – as well as a 10 per cent levy on Chinese goods.
All three nations have vowed to respond in kind to the US President’s actions, sparking fears of a global trade war.
The UK’s blue chip share index fell 105.8 points to 8568.2 – a drop of 1.2 per cent – soon after trading began at 8am.
The Cac 40 in France and Germany’s Dax both opened around 2 per cent lower, before paring back falls to stand around 1.6 per cent lower.
Asian markets suffered heavy falls overnight as they were the first to react, with Japan’s Nikkei slumping 2.7 per cent and the Hang Seng in Hong Kong 1 per cent lower, although mainland Chinese markets remain shut for the Chinese Lunar New Year holiday until Wednesday.
Carmakers are the biggest share casualties so far in Europe, with Volkswagen, Mercedes-Benz, BMW, Daimler Truck, Continental and Porsche dropping by around 5 per cent in early trading across Europe.
Firms such as Volkswagen and Vauxhall owner Stellantis have operations in Mexico and are therefore exposed to the Mr Trump’s tariffs, while cars are also among the US president’s major gripes with the trade deficit that the US has with the EU.
Cars are among the biggest European exports to the US, alongside pharmaceuticals, and other machinery.
In the UK, luxury car firm Aston Martin was 4 per cent lower.
The pound edged lower against a strengthened US dollar, down 0.6 per cent at $1.23, but rose 0.5 per cent to 1.20 euros as the single currency came under pressure.
Mr Trump’s comments threatened to overshadow Sir Keir’s visit to Brussels, where he is continuing efforts to ‘reset’ relations with the bloc.
Sir Keir was due to urge EU countries to shoulder more of the burden of aid for Ukraine at the meeting in Belgium.
He will call on them to follow UK and US sanctions on Russia’s faltering economy and praise Mr Trump’s threat of further restrictions.
The defence-focused visit also saw Sir Keir meet Mr Rutte, the NATO secretary-general, at the alliance’s headquarters in the Belgian capital.
Their talks followed Mr Trump’s insistence he wants to annex Greenland, currently the territory of NATO ally Denmark, and make Canada the 51st state of America.
Giorgia Meloni arrived in sunglasses for the gathering of EU leaders
Denmark’s Prime Minister Mette Frederiksen, who has been embroiled in tensions with Mr Trump over Greenland
‘I’m here to work with our European partners on keeping up the pressure, targeting the energy revenues and the companies supplying his missile factories to crush Putin’s war machine,’ Sir Keir said.
‘Because ultimately, alongside our military support, that is what will bring peace closer.’
The Conservatives have set the Prime Minister five ‘tests’ over his approach to Brexit, and claim that if he fails to meet them it will prove he is willing to ‘undo’ the settlement the Tories reached while in power.
Among the commitments the Tories have demanded are for the UK to have continued freedoms over negotiating trade deals, and control of its borders outside the single market.
