As speculation grows about potential transatlantic trade, US president-elect Donald Trump's top adviser says Britain will align with US's 'free enterprise' economic model rather than a 'more socialist' European system said it should. transaction.
Stephen Moore, Trump's senior economic adviser, said the next government would be more “willing” to agree a trade deal between the two countries if the UK moved towards the US model of “economic freedom”.
His comments come as Keir Starmer faces competing demands over future trade deals with Washington and Brussels. Some have told the prime minister to choose sides in trade negotiations between the US and the EU, while others have suggested he could strike a deal with both major powers.
“The UK really needs to choose between the more socialist European economic model and the American model, which is more free enterprise,” Moore told the BBC's Today programme. I think the UK is somewhere between these two forms of economic models. I believe the UK would be better off moving more towards the US model of economic freedom.
“If that were the case, the Trump administration would be keen on a free trade agreement with the UK. I think that would make sense for both the UK and the US.”
Previous efforts to agree a UK-US trade deal have been marred by disputes over farming standards, particularly allowing chlorinated chicken and hormone-fed beef to appear on UK supermarket shelves. was shattered by concerns.
Mr Moore said: “I think our country has the best agricultural center in the world. So from this side of the ocean I don't think it's a problem, but in the UK I understand that. I know that was a big issue for many British people I spoke to when I was there.
President Trump is proposing blanket tariffs of at least 10% on all imports, as well as further retaliatory tariffs on countries that impose tariffs on U.S. imports. Moore said blanket tariffs are “quite popular with many American voters,” but suggested some countries could be exempted.
The prospect of tariffs is a setback for the British government, which has staked its success on economic growth. Earlier this month, Goldman Sachs cut its forecast for UK economic growth in 2025 from 1.6% to 1.4%, citing potential US tariff hikes.
“I think we have a special relationship with the UK, and I think most Americans, and Donald Trump too, see the UK in a very different light. Certainly, if we were to be more hostile… “It's very different from China and other countries in terms of perspective,” he said.
“We have a U.S.-Mexico-Canada trade agreement,” Moore said, referring to the U.S.-Mexico-Canada Agreement passed under the Trump administration to replace the North American Free Trade Agreement. As for this flat tariff, it is certainly possible to exempt them because of our special relationship with our North American neighbors. So your question is, could we possibly exempt the UK? , I may never know the answer.”
On Tuesday, Peter Mandelson, who has been tipped to be Britain's new ambassador in Washington, told the Times that Britain must “have our cake and eat it too” and build trade links with the EU and the United States.
“Now that we've left the European Union, we can't get out of our biggest export market and it's very difficult to trade freely there. But we're still trading; it's still our biggest export market. It's an export market. We can't leave it alone.
“And we have to reduce certain barriers and risks that we have in the European market as a result of Brexit. And transatlantic trade and investment is huge for us.”
Andy Haldane, former Bank of England chief economist, echoed a similar message, saying on Tuesday that the government was “insecure about what many countries in the world are doing to the EU, or to the US”.
