Donald Trump last night announced he would slap 25 per cent tariffs on imports from the European Union.
The President declared that the bloc was established just to ‘screw’ the United States of America as he announced the massive levy.
During a meeting in Washington DC, Sir Keir Starmer mentioned to President Trump that the UK does not have a trade deficit with the US, which could work in its favor.
‘It will be 25 per cent, generally speaking, and that will be on cars and all other things,’ he told reporters yesterday.
President Trump remarked that the European Union was originally established to undermine the United States, which he believes they have been successful at until his presidency.
Trump criticized the EU for exploiting America, highlighting that they have not been receptive to American cars or agricultural goods, resulting in a $300 million deficit with the EU.
Asked if the bloc would retaliate, he replied: ‘They can’t; I mean they can try, but they can’t.’
Speaking in his first cabinet meeting since returning to the White House, Donald Trump said the tariffs would hit the EU ‘very soon’
The US President said the European Union (pictured: EU Commission) was formed ‘in order to screw the United States’
The President claimed the US is the ‘pot of gold’ that everyone wants and when faced with retaliation it can ‘go cold turkey’ and not buy any more, winning the trade war.
His America First policy has already seen him announce tariffs of 25 per cent on all steel and aluminium imports.
He has also imposed 10 per cent tariffs on goods from China and is still threatening to hit Canada and Mexico with rates of 25 per cent despite putting them on hold after the US’s closest neighbours agreed to strengthen their borders against drug and gun smuggling.
Mr Trump has also threatened ‘reciprocal tariffs’ matching those of any country that imposes taxes on American firms, which could mean the UK suffers particularly badly as it charges VAT at 20 per cent on almost all goods.
However the US does not have a trade deficit with the UK as it does with the EU, potentially making it less of a target for the President’s ire.
Total trade in goods and services between the two countries was worth £294billion in 2024.
The Prime Minister was asked en route to the US how confident he was that the UK will be exempted from new tariffs and replied: ‘I’m not going to get ahead of our discussions. We’ve got a balanced book as it were, when it comes to trade.
‘We’ve got strong trade, millions and millions of pounds either way with the US.
Prime Minister Keir Starmer has travelled to Washington DC where he is set to meet the president (pictured in 10 Downing Street)
‘It’s pretty balanced in terms of surplus and deficit, and obviously I will act in our best economic interests.’
And Rachel Reeves insisted that commerce between Britain and the US can grow under the Trump administration.
The Chancellor, in Cape Town for a G20 meeting of finance ministers, told Bloomberg News: ‘Last time that President Trump was in the White House, trade and investment between our two countries increased. I have every confidence that can happen again.’
She added that Sir Keir – already under huge pressure to convince Mr Trump to continue to support Ukraine and Nato – will discuss trade in his first visit to the White House since the seismic US election today [thurs].
‘I know that the Prime Minister looks forward to talking about those issues and many others in his meetings with Donald Trump tomorrow,’ Ms Reeves said.
Tory leader Kemi Badenoch has said that a free trade deal with the US would be the best way for the UK to avoid being hit by tariffs.
The former Trade Secretary told the Mail on Tuesday: ‘The last time President Trump was in power, when we had Prime Minister Boris Johnson, we were negotiating that. I saw the work that had been done and President Biden scrapped that. What Keir Starmer needs to do now is to pick up where we left off and conclude that UK-US free trade agreement.’
