On February 3, President Donald Trump stated that although the UK's trade practices were out of line, he believed that tariffs could be avoided, mentioning, I think that one can be worked out.
Trump imposed tariffs on Mexico, Canada, and China, signaling that similar actions were likely with the European Union. This raised concerns about a potential trade war impacting economic growth and consumer costs.
Regarding the UK, Trump indicated that tariffs might occur, emphasizing the EU's greater divergence from fair practices. However, he expressed optimism about reaching a resolution with the UK. He praised UK Prime Minister Keir Starmer's cooperation and expressed hopes to balance budgets through mutual efforts.
A UK government spokesperson highlighted the indispensable alliance with the U.S. and the beneficial trade relationship. They looked forward to strengthening UK-U.S. trading relations for the mutual benefit of both economies and people.
Despite differences in trade data reporting, both the UK and the U.S. recorded goods surpluses with each other. UK statistics showed a goods surplus of 1.9 billion pounds ($2.3 billion) with the U.S. in the year up to the end of the third quarter in 2024. Total trade between the two countries amounted to 294 billion pounds, with the U.S. being the UK's largest trading partner individually.
Starmer emphasized the importance of enhancing trading ties in initial talks with Trump, underlining the significance of their robust trade relations.