Sir Keir Starmer needs to be prioritising the UK’s relationship with the US fairly than the EU, the shadow enterprise secretary has mentioned.
Andrew Griffith, a former Conservative minister, mentioned the prime minister – who’s heading to Brussels on Monday for talks with EU leaders – “should be rediverting his plane tomorrow” to Washington DC”.
Talking on Sky’s Sunday Morning With Trevor Phillips, Mr Griffith mentioned the UK financial system wanted “all the help it can get at the moment” as he criticised the tax will increase within the chancellor’s finances and declining enterprise confidence.
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Andrew Griffith MP in 2023. Pic: Reuters
In a single day President Trump imposed tariffs on Mexico and Canada – prompting fears that he might do the identical with the UK and jeopardise Rachel Reeves’ mission to develop the financial system.
Mr Trump declared an financial emergency so as to place duties of 25% on items from Mexico and Canada, and 10% on all imports from China.
The tariffs additionally embody a mechanism to escalate the charges if the international locations retaliate – which Canada and Mexico did in a single day.
In response to Canada’s retaliation, Mr Trump went additional by threatening that the neighbouring nation ought to change into “our cherished 51st state”.
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“The UK depends upon free trade, we don’t run particular trade deficits with the United States but, clearly, our economy needs all the help it can get at the moment after this government has come in, they’ve destroyed confidence, put up taxes, they’re proposing lots of extra red tape,” he mentioned.
“So, the economy needs help and one of the big opportunities for the UK right now would be to get much closer to the US, our biggest trading partner.
“We have now a commerce take care of the European Union already, so, alongside that, a commerce take care of the US can be a giant win.”
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The Labour authorities has lengthy sought to reset the UK’s relationship with the EU so as to deal with issues akin to small boat crossings within the Channel.
In addition to travelling to Brussels on Monday, Sir Keir can be internet hosting German Chancellor Olaf Scholz at his Chequers nation residence at the moment.
Talking to reporters at Chequers, Sir Keir mentioned he had been “very clear” that whereas he does desire a reset of the connection between the UK and EU, “that does not involve a return to the EU”.
“We had a referendum here on that and that matter is settled, but I do want to see a close relationship on defence and security, on energy, on trade and our economy, and that is what we’re working on and I think that is certainly in the UK’s best interests,” he mentioned.
His phrases had been echoed by Yvette Cooper, the house secretary, who mentioned the UK wished “stronger relationships with the US” and the European Union.
She admitted that the tariffs Mr Trump has imposed towards Canada, Mexico and China risked having a “really damaging impact” on the worldwide financial system.
“Well, tariff increases really right across the world can have a really damaging impact on global growth and trade, so I don’t think it’s what anybody wants to see,” she advised the BBC’s Sunday With Laura Kuenssberg.
“The focus for Johnny Reynolds, our business and trade secretary, is on building trade links and better trading relationships, and removing barriers to trade, with the US, and also with other European countries and with countries right across the world.
“We wish to scale back the boundaries to commerce, make it simpler for companies.”