Despite a 10% tariff on UK goods, Keir Starmer’s quiet negotiation strategy could secure a favourable trade deal

Keir Starmer’s strategy of cautious diplomacy with Donald Trump is showing signs of promise, even as the US president announced reciprocal tariffs on multiple countries, including the UK. On Wednesday, Trump revealed that a 10% import tax would be applied to UK exports — a figure notably lower than the 20% imposed on the EU. While the tariff still poses a significant challenge for the UK economy, Starmer’s approach of engaging Trump through back-channel negotiations may soon bear fruit.

The announcement follows a sustained “love bombing” campaign by the UK, including a planned meeting between Trump and King Charles in June. This softer approach is seen as putting Britain in a strong position despite the tariff hit. Leslie Vinjamuri, director of the US and Americas programme at Chatham House, believes the UK’s diplomatic handling has been strategic, suggesting the UK could be at the “front of the queue” for a trade deal with the US.

Trump’s move to impose universal tariffs, including the 10% tax on the UK, is part of a broader strategy to force countries to negotiate individually. However, Vinjamuri argues that the UK could secure a deal quickly, particularly if it rolls back taxes on tech firms, a move that would be politically advantageous for Trump.

But the path Starmer has chosen is not without risk. Critics argue that drawing Trump’s attention to the UK could lead to unwanted concessions. David Henig, of the European Centre for International Political Economy, cautioned that this approach could unintentionally highlight weaknesses in UK policy, potentially exposing areas like digital safety laws, food standards, and VAT to scrutiny.

Despite these concerns, Government officials remain optimistic. There is a sense that a deal with the US could be finalised within days. The success of Starmer’s soft-diplomacy strategy will likely depend on how quickly the UK can negotiate a favourable deal with the US — a process that has already been pursued by countries like South Korea, Japan, India, and Australia.

Jonathan Reynolds, the business and trade secretary, reinforced that the UK’s stance would remain “calm” and “committed” to securing a deal that mitigates the tariff impact. However, Ed Davey, leader of the Liberal Democrats, has called for a stronger stance, suggesting that the UK should form an “economic coalition” with the EU and Canada to counter Trump’s tactics.

The UK government’s strategy aligns closely with that of former Japanese prime minister Shinzo Abe, who built a positive rapport with Trump through a combination of flattery and behind-the-scenes negotiation during his first term. Leslie Vinjamuri warned against focusing solely on retaliation, arguing that cooperation, rather than aggression, would yield better results for all parties involved.

As the US continues to navigate its tariff policy, the UK’s next steps will be closely watched. Will Starmer’s measured approach lead to a quick trade agreement, or will the pressure to retaliate become too great? The coming weeks will be crucial in determining whether this diplomatic gamble will pay off.

THE INDEPENDENT

The EU has vowed to impose countermeasures in response to President Trump’s 20% tariff on imports from the 27-nation bloc, which has caused significant disruptions in global trade. Asian markets, including Japan’s Nikkei 225, South Korea’s Kospi, and Hong Kong’s Hang Seng, saw sharp declines, with China facing a 54% tariff on its goods. Japan strongly criticized the move, calling it “extremely regrettable,” and India’s markets also fell. Trump’s tariffs, which apply to several countries, including China and India, are expected to raise trade tensions and affect global growth. The US Treasury Secretary has urged nations not to retaliate, but China and others have promised countermeasures. The EU plans tariffs on up to €26bn worth of US goods. Analysts warn these actions could disrupt economic stability globally, with the long-term impacts still unclear.

BBC

The UK government is reacting to President Trump’s newly imposed tariffs with a mixture of relief and concern. While the UK is not facing the same level of punitive tariffs as the EU, the imposition of tariffs on global trade is expected to disrupt industries, particularly the car sector. There is a sense of relief in government circles as the UK is considered “in the good camp,” but the long-term economic effects of Trump’s tariffs remain a concern. Negotiations with the US continue, with UK officials engaging in intensive talks with their American counterparts. Some see the UK’s treatment as a result of Brexit, while others, like the Liberal Democrats, urge a united response with Commonwealth and European allies. Prime Minister Keir Starmer is meeting affected businesses, and the business secretary will address Parliament, with the ongoing trade developments likely to have significant global repercussions.