Sir Keir Starmer and Donald Trump have agreed that “productive negotiations” about an financial deal between the UK and US will “proceed at tempo”, Downing Avenue has stated, forward of a looming deadline on US tariffs.
The Sunday evening telephone name between pair comes after sources at No 10 stated the government was prepared to retaliate against US trade taxes if needed.
British negotiators try to win a last-minute exemption forward of Trump’s 25% levy on automobile imports, which is predicted to return in on Wednesday.
Trump has imposed a collection of tariffs concentrating on items from different international locations within the first few months of his second time period within the White Home, with threats of wider taxes additionally being imposed.
The prime minister has previously said he does not want to jump into a trade war with the US. The federal government has argued the UK has a comparatively equal buying and selling relationship with the US, in comparison with its different companions.
The impartial Workplace for Funds Accountability has warned a reciprocal commerce struggle would wipe billions off financial progress and all however get rid of the headroom Chancellor Rachel Reeves has to remain inside her self-imposed fiscal guidelines.
It’s unclear how the UK would retaliate if tariffs do come into impact. There are a selection of choices out there, from duties on sectors the place British merchandise are notably essential to the US, to specializing in particular merchandise like Harley Davidson bikes.
The US president argues his measures will assist American producers and shield jobs, regardless of warnings costs may go up for shoppers.
Earlier on Sunday, Trump said that he “couldn’t care less” if carmakers raise prices because it meant “individuals are gonna purchase American-made automobiles”.
Throughout a gathering between the prime minister and president on the White Home final month, Trump hinted at “a real trade deal”, which could see the UK avoid the kind of tariffs he has been threatening other countries with.
Of their name on Sunday, the 2 leaders additionally mentioned persevering with to stress Russia over the Ukraine struggle, Downing Avenue’s spokesperson stated.
“Discussing Ukraine, the prime minister up to date the president on the productive discussions on the assembly of the Coalition of Prepared in Paris this week,” they stated.
“The leaders agreed on the necessity to sustain the collective stress on Putin.”
No 10 stated Trump started the decision by sending King Charles III his greatest needs, after the monarch skilled momentary uncomfortable side effects throughout most cancers remedy earlier within the week.
The 2 leaders agreed to remain involved within the coming days, No 10 added.
