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Sir Keir Starmer called for “open and strong” trade ties with America after Donald Trump announced that tariffs set to be imposed on Canada would be delayed.
The Prime Minister stressed that it was “early days” when it comes to talks on tariffs with Trump who had threatened to impose levies of 25 per cent on goods from Canada and Mexico, before striking a deal at the eleventh hour with both countries.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump's demand to crack down on immigration and drug smuggling.
In response, the White House postponed its planned tariffs for one month.
Mr Trudeau said Canada would deploy new technology and personnel along its border with the United States to stop the flow of fentanyl. The US president told reporters that a phone call with Mr Trudeau on Monday afternoon went "very well."
It came hours after Sir Keir told reporters at a conference in Brussels that “open and strong trading relations” with other countries were “really important”.
“That’s been the basis of my discussions with President Trump and I know that intense US-EU discussions are planned.”
Britain has rejected Trump’s claim of “out of line” UK-US trade flows as he started hitting several countries with hefty tariffs.
Trump has said he “might” hit Britain with tariffs as he warned the US will impose levies on imports from the European Union “pretty soon”.
He hinted, though, that a deal could be struck with the UK to avoid or limit tariffs.
Mexico, China and Canada had all vowed to respond to Mr Trump’s tariffs, sparking fears of a global trade war which hit stock markets in Asia, Europe and America.
The Mexico tariffs were delayed for a month after it said it would strengthen its border with America to reduce migration numbers.
Asked by the BBC early on Monday if he would target the UK with tariffs, Mr Trump said: “UK is out of line but I’m sure that one, I think that one can be worked out.
“But the European Union, it’s an atrocity what they’ve done.”
He added: “They don’t take our cars, they don’t take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products.”
Responding to Trump’s claim of “out-of-line” trade UK-US trade flows, the Prime Minister’s official spokesman said: “The US-UK trading relationship is worth over £300 billion, invest £1.2 trillion in each other’s economy.
“We have got a fair and balanced trading relationship which benefits both sides of the Atlantic and we look forward to building on that with the United States.”
While arriving into Maryland from Florida, Trump said discussions with Sir Keir Starmer had “been very nice”, adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”
Mr Trump’s comments threatened to overshadow Sir Keir Starmer’s meeting with the heads of the 27 EU governments later on Monday, as the Prime Minister continues efforts to reset Britain’s relationship with the trade bloc.
The Prime Minister will urge Europe to bear down on Vladimir Putin’s Russia when he meets.
But the gathering, meant to focus on defence co-operation, is likely to be preoccupied with news from across the Atlantic.
Trump admitted on Sunday that Americans could feel “some pain” from the emerging trade war triggered by his tariffs against Canada, Mexico and China, and claimed Canada would “cease to exist” without its trade surplus with the US.
“Will there be some pain? Yes, maybe (and maybe not!),” Trump said in a social media post.
“But we will make America great again, and it will all be worth the price that must be paid.”
In his Truth Social post, Trump took particular aim at Canada, which threatened to respond with retaliatory measures.
He had proposed to introduce a 25% tariff on Canadian goods, with a 10% tax on oil, natural gas and electricity.
Canada had been due to impose 25% tariffs on more than 155 billion dollars (£125 billion) of US products, including alcohol and fruit.
But President Trudeau said on a post on X: “I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.
“Nearly 10,000 frontline personnel are and will be working on protecting the border. In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.
“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.”
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
Canadian Prime Minister Justin Trudeau is encouraging Canadians to buy more Canadian goods, and says Mr Trump’s moves will only cause pain across North America.
Mexico’s president, Claudia Sheinbaum, also announced new tariffs and suggested the US should do more within its own borders to address drug addiction.
The Chinese government said it would take steps to defend its economic interests and intends to file a lawsuit with the World Trade Organisation.
