Keir Starmer last night vowed to continue trying to unpick Brexit – despite warnings Britain will be dragged into a damaging trade war with the United States.
In a dramatic move which caused turmoil on global markets yesterday, Donald Trump threatened heavy trade tariffs against the EU, describing the bloc’s conduct as ‘an atrocity’. But he suggested the UK could be spared because of Brexit.
Senior Tories urged the Prime Minister to abandon his ‘reset’ with Brussels and focus on securing a new trade deal with the US.
But speaking ahead of a dinner with EU leaders last night, Sir Keir said he was ‘not choosing’ between the two powers as they engaged in an acrimonious war of words over trade.
Tory business spokesman Andrew Griffith said the PM had ‘got his priorities wrong’ by ‘cosying up to the EU’.
He added: ‘Rather than thinking about taking hundreds of thousands more migrants and surrendering our fisheries, he should instead look West to rekindle a trade deal with America.
‘Our country’s best days are ahead of us. But only if Keir Starmer stops kowtowing to the economically floundering EU and looks further afield.’
It came as:
– The pound surged against the euro on the back of Mr Trump’s hint he would spare Britain from new tariffs
Sir Keir Starmer with Antonio Costa, the President of the European Council in Brussels. The PM said he was ‘not choosing’ between the US and Europe
Donald Trump (pictured on Monday) hinted he would spare Britain from new tariffs, while threatening Europe with a trade war
Keir Stammer speaks to the media as he arrives for an EU summit at the Egmont Palaceon in Brussels on Monday
– European leaders reacted furiously, with Emmanuel Macron saying Europe would ‘stand up for itself and therefore react’
– Mr Trump delayed imposing 25 per cent tariffs on Mexico by a month after the country’s president agreed to send 10,000 troops to help police the border
– Stock markets fell around the world as investors took fright at the prospect of a global trade war
– Canadian PM Justin Trudeau held crisis talks with Mr Trump amid fears the tariffs could plunge his country into recession
– Mr Trump is expected to speak with Chinese president Xi Jinping today
– Whitehall officials drew up contingency plans to retaliate if Mr Trump puts tariffs on goods from the UK
– Nato chief Mark Rutte urged Sir Keir to increase defence spending to help placate Mr Trump
Former Tory minister Sir John Hayes said it was time for the PM to ‘wake up and smell the coffee’.
Sir John said Sir Keir should focus on building closer trade ties with the US rather than being ‘dragged down’ by Brussels. He told the Mail: ‘I am hopeful we can do a deal with President Trump.
The PM hosting German Chancellor Olaf Scholz (left) at Chequers on Sunday
The Europeans will have to look after themselves.’ Former business secretary Sir Simon Clarke warned the PM not to squander a ‘critical opportunity to avoid the tariffs heading the EU’s way’ by getting too close to Brussels.
Mr Trump yesterday suggested the EU would be next in line for tariffs after proposing levies on imports from Canada, Mexico and China over the weekend.
He described the imbalance in trade between the US and EU as an ‘atrocity’ which would ‘definitely’ lead to the imposition of tariffs. Mr Trump said the EU had ‘really taken advantage of us,’ adding: ‘The EU is really out of line… it’s an atrocity what they’ve done.’
He said he ‘might’ also levy tariffs on the UK but suggested that a deal could be done. ‘The UK is out of line but I’m sure that one – I think that one – can be worked out.’ But despite Mr Trump’s olive branch, Sir Keir insisted he would press ahead with his plans for closer trading ties with Brussels.
Last night he became the first British PM to attend a summit of EU leaders since Britain left the EU five years ago.
Speaking ahead of the meeting, he insisted he could ride both horses. ‘Both of these relations are very important to us,’ he said. ‘We are not choosing between them.’
Sir Keir’s trip to Brussels was billed as a key step in Labour’s plans for a major ‘reset’ of relations with the EU.
Sir Keir with Emmanuel Macron. The French president said Europe would ‘stand up for itself and therefore react’ to Mr Trump’s threat of tariffs
The ‘informal dinner’ took place at the Egmont Palace in Brussels, where former Tory PM Edward Heath signed the treaty taking Britain into the EU in 1972.
EU leaders, who are seeking bigger fishing quotas for European trawlers, served the PM a dinner of sea bream.
Nigel Farage said the EU’s choice of venue was ‘deliberate and humiliating’, adding: ‘Starmer has learned nothing from the Brexit vote and it will come back to bite the Labour Party.’
Kemi Badenoch said the PM ‘risks restarting the Brexit wars under the pretence of closer ties with the EU’.