Donald Trump would be more willing to clinch a free trade agreement with the UK if it turns away from the EU’s “socialism” and towards a US model, a senior economic advisor to the president-elect has said.
Stephen Moore, who is advising Mr Trump as he prepares for office, said the UK “has to choose” between the European Union and US economic models.
Sir Keir Starmer has launched efforts to “reset” relations with the EU since Labour entered Downing Street but he will also need to navigate trade relations with Mr Trump, whose pledge to impose tariffs could stymie the Prime Minister’s plans for growth.
“The UK really has to choose between the Europe economic model of more socialism and the US model, which is more based on a free enterprise system,” Mr Moore told BBC Radio 4’s Today programme.
“And I think the UK is kind of caught in the middle of these two forms of an economic model, and I believe that Britain would be better off moving towards more of the American model of economic freedom.
“And if that were the case, I think it would spur the Trump administration’s willingness to do the free trade agreement with the UK, I think it would make sense for both Britain and the United States.”
Whether a Trump White House will be open to a US-UK free trade deal is “yet to be determined” because some of the economists the president-elect has selected for his team are in favour and some are not, Mr Moore said.
“So I think that will be an internal debate within the new White House.”
He said Mr Trump would probably begin with using tariffs as a negotiating tactic.
Asked if the UK could potentially find a way to avoid potential blanket tariffs of 10 to 20% on all imports to the US, Mr Moore said: “I do think we have a special relationship with Britain, and I think most Americans, I think Donald Trump … view Britain in a very different way than, certainly from China or other countries that we view in a more adversarial way.”
Good to speak with President-elect @realDonaldTrump to congratulate him on his historic victory. I look forward to working together.
From defence and security to growth and prosperity, the relationship between the UK and US is incredibly strong and will continue to thrive for… pic.twitter.com/PXRFfudRIN
— Keir Starmer (@Keir_Starmer) November 6, 2024
Chancellor Rachel Reeves has ruled out accepting chlorine-washed chicken as part of any deal with the US.
The reluctance to open up British markets to US agriculture products was among the issues that stopped a post-Brexit deal with the US under the Conservatives.
Mr Moore said that he hoped it could be possible to “find a way around” such issues.
Sir Keir Starmer has said he wants to reset relations with the EU’s key players, including on trade.
When asked if he would turn towards the US or EU bloc if forced to choose, Sir Keir said on Friday: “We need good relations, both with the US and with the EU”.
The Chancellor said that she looked forward to “working closely” with President-elect Trump in a speech on Thursday.
“There is so much potential for us to deepen our economic relationship on areas such as emerging technologies,” she said.
But she also hailed plans to grow closer to “our biggest trading partner” the EU.
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