UK not choosing between US and EU, says Starmer

British Prime Minister Sir Keir Starmer has stated that the UK "will not choose between the US and the EU." This comes after US President Donald Trump threatened to impose trade tariffs on the EU. This statement underscores the UK's balanced position when managing its relationships with both major economic powers.

Last weekend, Trump announced 25% tariffs on Canada and Mexico, although these have since been suspended. He also indicated similar actions against the EU but hinted at a possible deal with the UK. When asked if he would be willing to ease close ties with the EU to maintain relations with the US, Sir Starmer emphasized the importance of both relationships for the UK. He added that this balancing act is not new for the UK and will continue for many years to come.

At a press conference in Brussels, the Prime Minister said that tariff negotiations with the US were at an “early stage” and supported “open and robust trading relationships.” He also stated that he supports open and strong trade relations. Sir Starmer’s trip to Belgium saw him meet with NATO Secretary General Mark Rutte and hold talks with EU leaders, the first UK Prime Minister to do so since Brexit.

Speaking about the tensions between the US and EU, Rutte said that there would “always be issues” between allies, but this “will not detract from our collective resolve to maintain a strong deterrent.” On Ukraine, he said NATO must “not just maintain but continue to increase support to Ukraine” to ensure Ukraine can negotiate with Russia from a “position of strength.” He also added that spending 2% of national income on defense is “not enough to guarantee our security” and that there is “no time to lose” in increasing funding. Currently, NATO requires each member state to spend at least 2% of their GDP on defense, but it is believed only 23 of the 32 members meet this target. Sir Starmer said the UK currently spends 2.3% and that his government would soon set out a “pathway” to reach 2.5%.

At a European Council dinner, the Prime Minister called for increased military cooperation between the UK and Europe, including improved military mobility and logistics across Europe, with a focus on research and development and deepening industrial cooperation. He also said there should be increased cooperation to protect nations from threats and sabotage, including subsea infrastructure. This comes after the UK issued a warning to Russia last month after a spy ship was spotted near undersea cables. While defense has been the focus of this trip to Brussels, it is also part of an ongoing effort to “reset” UK-EU relations for Sir Starmer. The UK government is hoping for stronger ties with the EU, but this risks angering the US and putting the UK at risk of being caught in a trade war. Similarly, the EU may object to Sir Starmer siding with the US over its European neighbors.

Previously, Downing Street said the Prime Minister trusts Trump, pointing to “a series of very constructive conversations early on” between the two. A spokesperson added: “We have a fair and balanced trading relationship that benefits both sides of the Atlantic. It is worth around £300 billion and we are each other’s biggest single investors, investing £1.2 trillion in each other’s economies.” Following Trump’s weekend tariff announcement, European and Asian stock markets fell, with car manufacturers particularly badly hit. The UK has also been impacted, but to a lesser degree than the EU. An analysis by the University of Sussex last year suggested that if the US imposed a blanket 20% tariff on all imports, UK exports could suffer a £22 billion loss. Trump believes imposing tariffs will help the US economy grow and protect jobs, but it could result in consumers paying more as prices adjust to accommodate the tax.

On Monday, Mexican President Claudia Sheinbaum said the 25% tariffs had been postponed after an agreement with the US that would see her country deploy 10,000 soldiers to combat drug trafficking into the US. Canadian Prime Minister Justin Trudeau also confirmed that Trump’s proposed 25% tariff on Canadian goods would be “paused for at least 30 days to allow us to work together.” European Commission President Ursula von der Leyen said the EU wanted constructive dialogue with the US, but it was ready to respond decisively if it was treated “unfairly” by a new Trump administration. French President Emmanuel Macron said that if the interests of the EU were attacked, the trading bloc would have to “make itself respected and therefore react.” EU foreign policy chief Kaja Kallas said there were “no winners in a trade war,” but if there was a trade war with the US, “then the one who is laughing on the sidelines is China.”

When asked if tariffs would be imposed on the UK, Trump said earlier: “The UK is non-compliant, but I believe that issue… I believe that issue will be worked out.” He added that his discussions with the UK Prime Minister were “very pleasant” and added: “We’ve had a couple of meetings. We’ve had numerous phone calls. We get along very well.” Alongside defense, the UK is also hoping to discuss with the EU the easing of restrictions on trade in food and animal products, as well as cooperation on emissions trading schemes. The mutual recognition of professional qualifications and allowing touring musicians to travel more easily are also areas of interest. The EU is keen to establish a youth mobility scheme that would make it easier for young EU citizens to study and work in the UK, and vice versa. However, ministers have so far rejected the idea.

Downing Street has not ruled out joining the pan-Euro-Mediterranean convention, which would allow tariff-free trade on some goods. The Conservatives have accused the government of “trying to reopen old wounds and push us back into the EU.” In contrast, Liberal Democrat leader Sir Ed Davey has been urging the government to negotiate a new UK-EU customs union, which would allow tariff-free trade between the two. Following the tariff announcement, Sir Davey said the US President was “acting like a playground bully” and that the UK should “work with our allies in the Commonwealth and Europe to stand up firmly to Trump.”