Edited by Madison Challis
With US tariff threats looming over Europe, the UK – one of the few economies with which America has a trade surplus – is in an advantageous position.
But could this serve as the necessary catalyst in strengthening relations with the European Union?
Tariffs are taxes charged on goods imported from foreign countries. They are usually used to protect domestic goods and encourage consumers to buy “home” products. Although tariffs are used sparingly due to their economic costs and potential trade conflicts, the 47th US president remains strongly committed to enforcing them.
During President Donald Trump’s first term in 2018, he imposed 20-50% tariffs on washing machines and solar panels. He had hoped that the tariffs would assist domestic industries and that foreign companies would set up businesses in the US, ultimately boosting employment figures. Whilst it did encourage foreign manufacturers to move to the USA, it mostly had an adverse effect - with US consumers bearing the brunt of the high cost, and American manufacturers used the high tariffs as an opportunity to drive up their own prices. Additionally, Trump's tariffs on aluminum and steel escalated into a costly trade war. Now Trump plans to continue this tariff legacy, promising to impose tariffs on economies that export more to the US - including those within the EU.
Beyond Europe, the ripple effects of Trump’s current US tariffs are being felt globally, with some countries uniting against Trump’s aggressive trade policies. Mexico and Canada both responded to Trump's 25% tariffs with retaliatory tariffs of their own, refusing to succumb to the US president’s intimidation tactics. Canadian Prime Minister Justin Trudeau urged citizens to “buy Canadian” to boost their economy, and mitigate any impacts on their livelihoods. In a dramatic twist, Trump said he would hold back on the tariffs on Canada and Mexico for at least thirty days, once they reached a deal.
However, in a phase where the pendulum's direction is guided not by policy or principle, but by the ego of one man - Europe must be more united than ever before. The French Prime Minister François Bayrou told La Tribune Newspaper that “If we each look out for our own interests, then we will disappear.” The EU has planned their approach to potential tariffs threatened by Donald Trump, keeping it private to not provoke him. As the EU considers how best to navigate these pressures, there appears to be a consensus in Europe that Trump’s protectionist policies pose significant issues for international diplomacy. It is becoming increasingly clear that Europe cannot be overly reliant on the US any longer, and must plan for an independent future.
This puts the UK in a unique position. It is evident that Starmer aims to maintain close alliances with both the US and the EU. Given the UK's favourable negotiation position, the EU may be more willing to make concessions. British Prime Minister Keir Starmer is hoping that greater cooperation on military and intelligence issues could unlock wider economic benefits. It’s been five years since tiresome Brexit talks, but it appears key members of the European council have since changed their tune, both parties open and willing to work to a compromise. Ironically, a man whose antics have sowed deep division, may be the driving force in strengthening EU- UK relations. Starmer has begun discussions with the EU on how to proceed and an EU- UK summit is likely to take place in May or April.
Although, the UK is walking a tightrope. The Prime Minister and Foreign Office have valiantly tried to dodge US tariffs and passively push back on Trump’s proposals without outrightly criticising him. Despite Trump’s controversial comments on Gaza, suggesting that the US could “take over” the territory, Starmer has maintained that the next steps for Israel and Palestine are a two- state solution. It is unclear how long Starmer can keep appeasing our American allies, especially as Trump becomes more and more unpredictable. No.10 has been careful to keep relations with President Donald Trump amicable, however Trump’s erraticism will largely redefine UK-US relations going forward. The ramifications of trying to negotiate with Trump seem insidious. We may also begin to see new alliances forming between other emerging countries in light of Trump’s trade policies. Which could ultimately remind Trump that in a globalised world, isolationist policies merely push allies away - American hegemony persists through the consent of the international community.
The US-UK special relationship has largely been defined by the leaders who maintain it. However, Trump’s presidency has begun to disrupt that medium. Trump, although an anglophile (and having strong affection for the Royal Family), does not play by the rules and conventions set by his predecessors. As the divergence in beliefs between Starmer and Trump become more stark and harder to ignore, it may be imperative that Starmer leverages the UK’s position with other nations -and significantly- a more receptive European Union.
Comments