Trump catastrophe for Labour: Rachel Reeves pleads with president-elect to not impose commerce tariffs amid fears of hit to UK progress – as Starmer scrambles to rebuild ties after row over backing for Harris
Rachel Reeves today pleaded with Donald Trump not to go ahead with trade tariffs amid fears of a hammer blow to UK growth.
The Chancellor said she would make ‘strong representations’ to the president-elect about the damage a protectionist regime would inflict.
Ahead of his bombshell victory in the US election overnight, Mr Trump has boasted that ‘tariff’ is his favourite word. He has floated a 10 per cent hike in levies on goods imported from around the world – potentially rising to 60 per cent for China.
The aggressive approach has sparked concerns that the new administration will spark a trade war, with analysts already trimming Britain’s growth predictions.
It is another major headache for Keir Starmer as he scrambles to prop up the Special Relationship in the wake of Mr Trump’s triumph.
The PM is facing a huge challenge after tensions flared over Labour supporters helping to campaign for Democrat contender Kamala Harris.
Tories are demanded he apologises for previous comments by David Lammy and other senior figures, branding Mr Trump a ‘Neo-Nazi sympathiser’.
The PM has also repeatedly clashed with billionaire Elon Musk, who looks certain to end up playing a key role in the Trump administration.
Chancellor Rachel Reeves said she would make ‘strong representations’ to the president-elect about the damage a protectionist regime would inflict
Ahead of his bombshell victory in the US election overnight, Mr Trump has boasted that ‘tariff’ is his favourite word
It is another major headache for Keir Starmer as he scrambles to prop up the Special Relationship in the wake of Mr Trump’s triumph
Sir Keir said in a statement this morning that he ‘looks forward to working with’ Mr Trump ‘in the years ahead’
Tory frontbencher Andrew Griffith mocked Labour for sending activists to help the Harris bid
Giving evidence to the Treasury Committee this afternoon, Ms Reeves said: ‘We’re not just a passive actor in this.
‘It’s a trade relationship with the United States and we will make strong representations about the importance of free and open trade, not just between ourselves and the United States, but globally, and the US also benefit from those that access to free and open trade with us and other countries around the world, and it’s what makes us richer as societies to benefit from that.’
Tory former Treasury minister John Glen highlighted that Goldman Sachs had alredy cut UK growth forecasts from 1.6 per cent to 1.4 per cent.
Challenged if it was realistic to seek to influence Mr Trump, Ms Reeves said: ‘We’ve got another couple of months before the inauguration.
‘Obviously, you know, we will begin those conversations. We’ll prepare for different eventualities.
‘I absolutely do not want to sound in any way sanguine. On the other hand, I am optimistic about our ability to shape the global economic agenda, as we have under successive governments.’
Downing Street refused to be drawn on ‘future policy discussions’ when asked whether Sir Keir was concerned about the prospect of future trade restrictions.
The PM’s spokesman said: ‘We look forward to working with President-elect Trump including on a wide range of his policy priorities to improve the UK-US trading relations and to support the significant investment relationship that supports millions of jobs across our two countries.
‘I’m not going to get into future policy discussions.’
Asked whether Sir Keir would want Mr Trump to refrain from launching a ‘trade war’, the spokesman said: ‘I’m not going to get into policy discussions that we’re yet to have with President-elect Trump, but as I say the UK and US have a strong relationship on economic and trade issues and we look forward to continuing to work (together).’
New Tory leader Kemi Badenoch slammed Sir Keir, Mr Lammy and other senior figures for their comments about the president-elect in her debut at PMQs.
She insisted that Sir Keir must invite Mr Trump to visit the UK and address both Houses of Parliament.
When Mr Trump was last president Labour MPs including Mr Lammy signed an early day motion arguing he should not be allowed the honour during a state visit.
The attack came after the premier opened the exchanges by congratulating the Republican.
‘Having had dinner with president-elect Trump just a few weeks ago I look forward to working with him in the years to come,’ he said.
Sir Keir said in a statement this morning: ‘Congratulations President-elect Trump on your historic election victory. I look forward to working with you in the years ahead.
‘As the closest of allies, we stand shoulder to shoulder in defence of our shared values of freedom, democracy and enterprise.
‘From growth and security to innovation and tech, I know that the UK-US special relationship will continue to prosper on both sides of the Atlantic for years to come.’
Foreign Secretary David Lammy – who once branded Mr Trump a ‘neo-Nazi-sympathising sociopath’ – said: ‘The UK has no greater friend than the US, with the special relationship being cherished on both sides of the Atlantic for more than 80 years. We look forward to working with you and @JDVance in the years ahead.’
Sir Keir ordered Cabinet ministers to stay silent on the election for fear of further inflaming the situation. But MPs have been unable to resist expressing their dismay on social media this morning.
Nigel Farage has warned that Britain must ‘roll out the red carpet’ for Mr Trump to repair the damage.
Meanwhile, jubilant Reform MPs have been demanding that Sir Keir uses Mr Farage’s close friendship with Mr Trump.
Government sources have been playing up a private dinner Sir Keir and Foreign Secretary David Lammy had with Mr Trump in New York in September, insisting they had struck up a good relationship.
But during the bitter campaign Mr Trump’s team filed an official complaint with federal election authorities accusing Labour of making ‘illegal foreign national contributions’.
Around 100 activists travelled to swing states to canvass for the Harris ticket – although Labour insisted they went at their own expense.
There was also anger that senior figures from the party went to the Democratic National Convention in August and met Harris aides. The two parties have long-term ties.
In interviews at the Commonwealth summit in Samoa last month, Sir Keir tried to gloss over fears the spat could derail the Special Relationship if Mr Trump wins.
He insisted that the situation needed to be ‘put in perspective’ as volunteers from parties have gone to help out in ‘every previous election’.
As a backbench MP in 2018, Mr Lammy wrote in Time magazine: ‘Trump is not only a woman-hating, neo-Nazi-sympathising sociopath.
‘He is also a profound threat to the international order that has been the foundation of Western progress for so long.’
And in a 2018 Times article ahead of Trump’s first visit to the UK, Lammy committed to be one of ‘tens of thousands on the streets, protesting against our government’s capitulation to this tyrant in a toupee.’
In a round of interviews yesterday, Health Secretary Wes Streeting was asked for his views on the election.
MPs have been unable to resist expressing their dismay at Kamala Harris’s (pictured) defeat on social media this morning
Tory MPs ridiculed Mr Lammy for his abrupt shift on Mr Trump
Nigel Farage said the UK must ‘roll out the red carpet’ for Mr Trump
He joked ‘I’ve got lots of thoughts but not ones I’m going to share as a government minister.’
Mr Streeting was challenged about a 2017 social media post where he described Trump as an ‘odious, sad, little man’, adding: ‘Imagine being proud to have that as your President.’
He told Good Morning Britain: ‘The Prime Minister and the Foreign Secretary have been working hard to build a relationship with President Trump and his team, so that in the event that he is elected as the next president of the United States, we start with the strong working relationship which is in our national interest and in the interests of the United States as well.
‘And it’s not often I would pray and aid Nigel Farage, the leader of the Reform Party but, as he said overnight, President Trump, you know, he speaks as he finds.
‘He had a very good meeting with Keir Starmer not too long ago, and of course, he’ll be aware of things that we’ve we’ve all said in the past…’
Mr Streeting said: ‘The important thing about this relationship, this transatlantic relationship, is one of the most important alliances that Britain has.
Jubilant Reform MPs have been demanding that Sir Keir uses Nigel Farage’s close friendship with Mr Trump to prop up the Special Relationship.
Some Labour MPs were unable to resist reposting pro-Democrat messages during the campaign – despite Sir Keir urging people to keep their counsel
‘We have shared values and shared strategic interests, and with war on our continent, in Ukraine, war in the Middle East and wider geopolitical threats, it is in the UK and United States’ national interests to work closely together.
‘That won’t change, whoever the occupant of the Oval Office is, and we only have hours now to wait until polls close.’
Senior government sources have poured cold water on Mr Farage’s suggestion that he could act as a ‘conduit’ between his old ally Mr Trump and the UK government.
‘That’s good of him,’ one said witheringly.
