Keir Starmer's EU trade negotiations could risk US tariff deal
15 April 2025, 23:46
Britain is close to signing a EU trade deal on food and veterinary standards - which could shut out American products.
Listen to this article
Loading audio...
It's believed that closely aligning with the EU could strain Britain's relationship with the US, as President Trump looks to sell American goods to the UK.
British negotiators are close to signing a deal with Brussels in food and veterinary standards, potentially next month, The Telegraph understands.
Lord Frost, lead Brexit negotiator under Boris Johnson, told the newspaper: "One of the things the Americans most want is access to our food and agriculture market”.
This comes as JD Vance said on Tuesday morning the US is "working very hard" with the UK to negotiate a "great" trade deal.
Donald Trump imposed sweeping tariffs on imports to the United States several weeks ago, sending stock prices tumbling and sparking fears of a global recession.
Since then, Trump has rowed back on tariffs, reducing the rate paid on imports from most countries to 10 per cent and, on Saturday, exempting electronics such as smartphones and laptops from the levy – including the 145 per cent charge on imports from China.
Lord Frost continued: “We would be selling away our ability to set our rules for no real benefit, and meanwhile, making it more difficult to do FTAs [Free trade agreements] with the countries that we don’t have them with – notably America.
"It just makes no sense to me. The world has changed, and they can’t adjust their policy. That’s fundamentally what the problem is.”
Read More: 'Likely' British Steel will be nationalised as Government rushes to save Scunthorpe site
It's understood that Sir Keir Starmer could sign the deal next month at a summit with European leaders.
Britain could sign a "dynamic alignment" on food and veterinary products - allowing the EU and UK to trade freely without border checks on the goods specified.
The trading system has been used previously by Brussels, removing customs checks goods between Britain and Northern Ireland.
Nigel Farage, the Reform UK leader, told The Telegraph: "If we are going to align with the European Union on food standards and veterinary standards, then we’re going to make life for America very difficult, maybe impossible.
"It is a very, very silly thing to do in a world that is fast changing. What I prioritise is keeping our hands free. Long term, financially, America is a much bigger goal."
Dame Priti Patel, the shadow foreign secretary, said: "It is thanks to the freedom and sovereignty this country regained from the EU that we have been able to negotiate trade deals with other countries.
"The Government should be prioritising securing a trade deal with one of the world’s largest economies, not cosying up with Brussels. The Conservatives will continue to hold them to account for this."
JD Vance: UK is in a 'good position' for a trade deal
It's believed this deal has been planned for at least two months, and fulfils Labour's manifesto pledge to "reset the relationship" with Brussels.
The Telegraph contacted Downing Street for comment.
The Government has been hopeful of a deal to exempt the UK from Trump’s tariffs, with Vance saying on Tuesday that he was optimistic that both sides could come to a mutually beneficial agreement.
"We’re certainly working very hard with Keir Starmer’s government" on a trade deal, Vance told UnHerd.
"The President really loves the United Kingdom. He loved the Queen. He admires and loves the King.
"It is a very important relationship. And he’s a businessman and has a number of important business relationships in [Britain]. But I think it’s much deeper than that
"There’s a real cultural affinity. And, of course, fundamentally, America is an Anglo country
"I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries."
He went on to say the “reciprocal relationship” between the US and UK gave Britain a more advantageous position than other European countries when it comes to negotiating new trade arrangements.
Minister Sarah Jones speaks to LBC
Speaking to LBC's Nick Ferrari at Breakfast on Tuesday, industry minister Sarah Jones said: "The conversations are ongoing... We know we're in a good position. We are having good conversations.
"The Secretary of State has been having good conversations with his partners and you know there is a deal there to be done... it's positive that the Vice President is positive about our negotiations."
