In this discussion, Kate Andrews, a political commentator with a keen eye on economics, and Charles Grant, director at the Centre for European Reform, delve into Trump’s escalating tariff policies. They analyze the implications for the UK and EU as Trump labels their trade relationship an ‘atrocity.' The duo also examines the delicate balancing act the UK faces in its post-Brexit dealings and how Labour's approach to EU negotiations might shape future ties. Expect insights into trade dynamics and the impact of fishing rights on negotiations.
Trump's escalating tariffs and trade war pose significant challenges for the UK in balancing relationships with the EU and US.
Keir Starmer's efforts to stabilize UK-EU relations highlight the complex interplay between security cooperation and fishing rights negotiations.
Deep dives
Political Dynamics of Trade Wars
The ongoing trade war, particularly initiated by Donald Trump, is significantly impacting North American trade relationships. Trump has imposed tariffs on various countries, with a notable focus on China, Canada, and Mexico, resulting in a consensus among economists that this situation is poised to escalate negatively. There is a perception that Trump's decisions are politically motivated, as he attempts to fulfill his election promises regarding tariffs. This trade conflict raises concerns about how the UK may navigate its relationships with both the EU and the US without incurring damaging tariffs amid these escalating tensions.
Keir Starmer's Diplomatic Challenges
Keir Starmer's engagements with EU leaders signify an attempt to stabilize UK-EU relations, particularly concerning security and defence issues. However, negotiations are complicated by France's insistence on resolving fishing rights before advancing other agreements. Despite a general acknowledgment of the need for cooperation on security matters, the French demands could hinder broader relations if not addressed promptly. The upcoming EU-UK summit may hinge on whether Britain can find a workaround for the French concerns, while also striving to maintain good ties with the US.
Implications of Trade Agreements
The potential for achieving a US-UK trade deal remains a contentious topic, especially regarding agricultural standards and regulations. There is a critical intersection between UK compliance with EU standards and the ability to negotiate favorable terms with the US. As discussions progress over sanitary and phytosanitary standards, which play a crucial role in agricultural trade, the outcome may determine the future of UK trade deals. The political ramifications of aligning with EU standards while negotiating a separate deal with the US generate significant debate within the Labour Party and broader political circles, leading to uncertainty about the best path forward for UK trade.
Trump's tariff spree continues... After making good on his election promise to opt for another round of tariffs – a 25 per cent tax on imports from Canada and Mexico and a 10 per cent levy on Chinese goods – Trump has now turned his attention to Europe.
In an interview with the BBC, the president said that while the UK would likely avoid tariffs, the EU might not be so lucky and described the trade relationship with Europe as an ‘atrocity’. This comes on the day that Keir Starmer is in Brussels and will likely be trying to smooth the road ahead of a post-Brexit ‘reset’. Can Labour continue to play both sides?
Katy Balls speaks to Kate Andrews and Charles Grant, director of the Centre for European Reform.
Produced by Oscar Edmondson.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode