Trump adviser tells Britain to dump socialist EU if it wants a free trade deal with the US
Britain should lean towards the United States rather than chase a closer relationship with the socialist European Union if it wants to secure a free trade deal, one of Donald Trumps top advisers has warned.
Britain should lean towards the United States rather than chase a closer relationship with the socialist European Union if it wants to secure a free trade deal, one of Donald Trumps top advisers has warned.
The much-debated deal has largely stayed on the sidelines during Joe Bidens presidency, but the prospect of it becoming reality has been revived following Trumps win at this months US election.
He is set to return to the White House in January, with global leaders already preparing themselves for swathes of change to come on economic policies.
That will include an end to free trade and the introduction of blanket tariffs of up to 20 per cent on goods imported to the US - and up to 60 per cent for China.
Analysts have said the fallout of such a change will have huge economic ramifications and could trigger a global trade war - though Trump is keen to exempt Britain if a deal can be struck.
Stephen Moore, his economic adviser, said Trump is determined to push ahead with the tariffs to boost US industry and employment.
But any free trade deal with the UK could stall if the Labour government insists on pursuing a closer trading relationship with the EU.
Speaking to The Times from Mar-a-Lago, Trumps residence in Palm Beach, Moore said: Ive always said that Britain has to decide — do you want to go towards the European socialist model or do you want to go towards the US free market?
Donald Trumps economics adviser Stephen Moore has said Britain should lean towards the United States rather than chase a closer relationship with the socialist European Union if it wants to secure a free trade deal
Donald Trump, who will return to the White House in January, is keen to end free trade and introduce blanket tariffs of up to 20 per cent on goods imported to the US - and up to 60 per cent for China
Lately it seems like they are shifting more in a European model and so if thats the case I think wed be less interested in having [a free trade deal] …
He added that he believes the UK has traditionally been more aligned with the United States than the rest of Europe.
Moore said: It would make sense to me … I think we do have a special relationship with the Brits more than we do with the Germans and the French and the rest of Europe.
Without a deal, the UK economy would face a huge hit from the US-imposed tariffs.
The National Institute of Economic and Social Research said tariffs could result in cutting GDP growth in the UK by half and an inflation rise of 3 to 4 percentage points.
It would also create a not insignificant £21.5billion hole in chancellor Rachel Reeves tax and spending plans.
The possibility of a deal between the UK and US is however not without its challenges.
One sticking point was the reluctance of UK ministers to open up British markets to US agriculture products.
British prime minister Sir Keir Starmer has said he is keen to reset the relationship with the EU
Chancellor Rachel Reeves has ruled out allowing chlorine-washed chicken or hormone-treated beef on the UK market from the US, which could prove a sticking point in any deal
Former prime minister Rishi Sunak said last year he would not allow chlorine-washed chicken or hormone-treated beef on the UK market.
And Ms Reeves confirmed on Friday that Labour would keep the same stance as she said the Government was determined to support British farmers.
We havent got to that stage yet but were determined to support the farming industry in this country, she told ITV News.
Were not going to allow British farmers to be undercut by different rules and regulations in other countries.
Pressed on whether she would rule out imports of chlorinated chicken or hormone -treated beef, the Chancellor added: We opposed them in the last parliament and that wont change.
But we do want to improve trade flows between our countries, thats really important for Britain.
To build on the trade relationships we have with the US, but also with the EU.
Another challenge is the departure of Britains most senior trade negotiator.
Andrew Bailey insisted the consequences of Brexit could not be ignored as he bemoaned the economys lacklustre performance since the 2008 Credit Crunch
Sir Crawford Falconer - who has been the UKs top trade expert since 2017 and who previously worked on a US trade deal with Mr Trumps first administration - will be leaving the Department for Business and Trade next month.
According to The Times, Sir Crawford is leaving his role after his contract was not extended and he will not be directly replaced.
Labour will instead give more junior officials responsibility for overseeing Britains trade negotiations in future, the newspaper reported.
Andrew Griffith, the Tory shadow business secretary, said the decision to allow Britains top trade expert to leave was staggering.
He questioned whether it was deliberate self-harm or merely negligence by Prime Minister Keir Starmer.
It is staggering that at this crucial time following the US elections, the Government has dispensed with the services of its chief trade negotiator with direct experience negotiating across the Atlantic, Mr Griffith said.
It is like retiring your opening batsman on the first day of a Test match.
Sir Jacob Rees-Mogg, the Tory former business secretary, said: Losing a first class trade negotiator when a trade deal with our biggest trading partner, America, is on the horizon shows how inadequate this Government is.
Sir Crawford has spent 25 years working on trade policy and trade negotiations and was previously New Zealands chief trade negotiator.
The National Institute of Economic and Social Research said tariffs imposed by Trump could result in cutting GDP growth in the UK by half and an inflation rise of 3 to 4 percentage points
He was appointed to be the UKs chief trade negotiator when Theresa May was PM as she prepared for Britain leaving the EU and regaining control over trade policy.
Sir Crawford previously had his contract extended in 2022 and 2023, but it is understood he is content not to have had his contract renewed again.
It was reported last year that he was planning to return to his native New Zealand once Britain had completed its accession to the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) trade bloc.
Negotiations over a UK-US trade deal began during Trumps first presidency but stalled when Biden replaced him as US president in 2021.
The Republicans return to the White House has led to hopes that talks could resume, although it has been claimed Sir Keir might prioritise his reset of post-Brexit relations with the EU rather than chase a deal with the US.
Andrew Bailey, the Bank of England governor is also keen for this rebuilding of ties with the EU and insisted the consequences of Brexit could not be ignored as he bemoaned the economys lacklustre performance since the 2008 Credit Crunch.
In his Mansion House speech on Thursday night, Mr Bailey expressed concern about the impact of geopolitical shocks and the broader fragmentation of the world economy.
Meanwhile Ms Reeves has said that alongside beefing up ties with Europe she wanted to improve trade links with the US and China.
She said: We will not be reversing Brexit or re-entering the single market or customs union, but we must reset our relationship.
Peter Mandelson, the frontrunner to be Britains next ambassador to the US, believes however that Britain might be able to secure deals with both the UK and America and find a way to have our cake and eat it
He said it was wrong to think the UK would have to choose between either close collaboration with EU trade policy, or an exceptional trade arrangement with the US.
