Trump aide urges UK to embrace free market over 'socialist' EU - despite banking boss's call to 'rebuild relations'
16 November 2024, 00:51
A senior economic adviser to Donald Trump has suggested that Britain should prioritise aligning with the United States on trade rather than seeking closer ties with the European Union’s “socialist model.”
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Trump has proposed broad tariffs of up to 20% on goods imported to the U.S., a move that could ignite a global trade war and inflict significant economic harm on the UK. Imports from China could face tariffs as high as 60%.
Stephen Moore, who is advising Trump as he prepares for office, stated that the president-elect has a mandate to implement these tariffs, aiming to strengthen American industry and create jobs.
Speaking from Mar-a-Lago, Trump’s residence in Palm Beach, Moore warned the US would be “less interested” in a free trade deal with the UK if it pursued closer alignment with the European Union, according to The Times.
The comments come at the same time the governor of the Bank of England has urged the UK must "rebuild relations" with the EU.
In his speech, the Conservative economist and author said: “I’ve always said that Britain has to decide — do you want to go towards the European socialist model or do you want to go towards the US free market? Lately it seems like they are shifting more in a European model and so if that’s the case I think we’d be less interested in having [a free trade deal] … I hope they would move towards freedom but that doesn’t seem to be the case given the budget that they just came out with in London.”
It comes as Andrew Bailey made some of his strongest remarks on Brexit - in his Mansion House speech to investors - acknowledging that one of its effects has been reduced trade.
While he had previously refrained from commenting on the issue to maintain the Bank of England's independence from politics, Mr. Bailey stated that the altered relationship with the EU has "weighed" on the economy
"As a public official, I take no position on Brexit per se," he said.
"But I do have to point out consequences."
He went on: "The impact on trade seems to be more in goods than services... But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting that very important decision of the British people."
The government remains opposed to rejoining the EU, but Chancellor Rachel Reeves admitted in her Mansion House speech there could be a closer relationship between the two.
She stated: "Our biggest trading partner is the European Union. We will not be reversing Brexit, or re-entering the single market or customs union. But we must reset our relationship," she said.
Sir Keir Starmer is working to rebuild relations with the EU, prioritizing negotiations for a closer trading partnership as a key strategy for boosting economic growth.
Boris Johnson's government sought a free trade deal with Donald Trump's administration in 2020, but negotiations collapsed due to concerns over American agricultural standards, including the use of chlorine-washed chicken and hormone-treated beef.
Chancellor Rachel Reeves has already ruled out allowing imports of chlorinated chicken or hormone-treated beef.
