President Trump’s tariff war on Canada and Mexico is set to impact Britain. (Image: Getty)
President Trump’s tariff war on Canada and Mexico is set to impact Britain.
From higher UK borrowing costs to an overall jump in prices and slowdown in global trade, the UK may be unable to avoid the blowback.
Crucially, the UK may feel it has to pick sides if and when the EU is targeted as well.
The EU as a collective is Britain’s biggest trading partner and we know Labour is keen to ingratiate itself with Brussels.
Still, the UK has more to lose than gain by siding with Brussels.
The EU is unlikely to reward a UK which sides with the bloc and a pro-UK Trump White House — keen to do deals with post- Britain — is likely to retaliate.
Whatever Labour loyalists feel, a consequent economic hit will again affect borrowing costs, scupper Rachel Reeves’s spending plans, and undermine investment in frontline services.
The UK should play it smart by doing two things. It must try to avoid cosying up to Brussels while keeping trade ties strong. And in the meantime it must guarantee strong ties with DC.
Britain has barely scratched the surface of its post- benefits. Climbing back into bed with the EU will undermine things further.
Now instead the UK should maximise its gains and work with the Trump White House, playing it smart and guaranteeing it remains free of the full force of the tariff war.
Labour could do well by starting with tearing up the terrible Chagos Islands deal which threatens the Western alliance – a deal we know the Trump team is dead against.
Will Labour put country before ideology? Only time will tell.