KEIR Starmer has reportedly been warned by the European Union (EU) against making trade concessions to Donald Trump which could harm the UK’s Brexit terms.
Insiders in Brussels and the UK have said the EU has been in “constant contact” with the UK Government discussing the “limits of what would be acceptable” amid fears that the Prime Minister could jeopardise any Brexit terms in his pursuit of a US trade deal that lowers tariffs, according to reports.
Starmer is attempting to lower the 25% tariffs on British steel, aluminium, and cars along with the 10% blanket import tax on other goods.
The EU warning comes as US vice president JD Vance said Washington officials were “working very hard” with the UK Government to negotiate a “great” trade deal and that there was a “good chance” of an agreement.
Brussels officials have concerns that UK concessions to the US on agri-food imports could harm the Labour Government's goal of a deal to ease cross-border food trade with the EU in a bid to lower costs for supermarkets, the i Paper has reported.
EU officials are also reportedly concerned about other demands from Trump including the UK exempting American companies from carbon taxes due to come into force in 2027.
Reportedly any concessions by the UK on carbon tax exemption could harm plans to link British and European emissions trading schemes which aim to lower the costs for businesses.
A Brussels insider told the i Paper there was “constant contact between officials on the limits of what would be acceptable to the EU” and the “impact of any UK/US deal on the alleged Brexit ‘reset’.”
It is also understood that other UK allies, such as Canada and Japan, are also working closely with Britain on Trump’s tariffs and how any deals with the US could impact relations with Brussels.
David Henig, a former British trade official and UK director of the European Centre For International Political Economy, said he has “every expectation that messages to that effect have been passed from the EU to the UK given that food and drink is on the UK-EU agenda for the summit”.
The Brussels insider also said they believed the US is using the prospect of a UK trade deal to drive a wedge and “play a political game to damage the EU-UK reset”.
Starmer has repeatedly insisted he does not have to choose between the EU and the US over trade.
When previously asked at a press conference in Brussels in February during a visit with EU leaders, the Prime Minister said: “Both of these relations are very important to us. We are not choosing between them.”
Paul Adamson, chairman of the EU-UK Forum, agreed that Washington’s offer to the UK on trade appeared designed to “drive a wedge between the UK and Europe.”
“You see American commentariat on social media to that effect.
“The last thing the Americans want is for the UK and Europe to be united and come closer together. I hope the Government sees through that.
“I think even without Brussels ‘telling the Brits’, they would know things like hormone-treated beef and chlorinated chicken are not going to be compatible with any rapprochement with the EU.”
A senior Labour MP added: “Don’t let the Americans determine your negotiating strategy; it’s like letting a toddler decide where you go – they keep changing their mind.”
A UK Government spokesperson said: “We want to deliver a UK-EU strategic alliance to grow the economy, boost living standards, and protect our borders.
“We will not provide a running commentary on speculation.”
