PRESIDENT Donald Trump’s decisions to impose tariffs place the UK in an uncomfortable position when it comes to Europe, according to an international trade expert.
It comes after Prime Minister Keir Starmer insisted that Britain did not need to pick between close ties with the EU or the US at a Nato press conference in Brussels on Monday.
Trump’s promise to impose tariffs on some of the United States biggest trading partners is already coming to fruition with levies imposed on Canada, Mexico and China
With Trump now turning his attention to the EU and the UK, Dr Piotr Jaworski, an expert in international trade at the University of Dundee’s school of business, has said Trump’s actions place the UK in an "increasingly difficult position".
While declaring that new EU tariffs will "definitely happen," Trump softened his tone regarding Britain, suggesting that despite the UK being "out of line," trade issues could be resolved.
In reaction to the comments, Jaworski said: “The timing is crucial, as trade data reveals Britain's precarious position. The United States stands as the UK's leading partner for services trade and dominates goods exports while ranking second in goods imports.
"However, viewing the European Union as a unified trading bloc paints a dramatically different picture: EU trade volumes dwarf US figures, with EU goods trade exceeding US levels by more than threefold in exports and fivefold in imports.
“This trade structure places Britain in an increasingly difficult position as tensions escalate between its two largest trading partners. With an economy less than one-sixth the size of either the EU or US, Britain lacks the economic leverage to maintain equidistant relations with both powers."
Jaworski said Starmer's recent trip to Brussels, joining a gathering of European Union leaders – the first such visit by a British Prime Minister since Brexit – signals a potential "reset".
The hope is that this visit could lead to improved relationships by spring, potentially culminating in a UK-EU summit in April or May.
EU leaders raised concerns that Trump’s threatened tariffs on European countries could spark discord among leading western nations.
However, "choosing Europe could come at a significant cost," Jaworski said, before adding: "Several industries could face harsh US tariffs, including steel and aluminium exports, Scotch whisky, digital services, and the automotive sector. The Scottish economy could face severe challenges.
“Trump's signals suggest an alternative path. His indication that trade relations with Britain could be improved more easily than with the EU opens possibilities for compromise."
He added that Starmer's upcoming Washington visit in late February might provide an opportunity to explore such trilateral solutions.
