Keir Starmer is facing one of the trickiest moments of his premiership as the UK navigates a potential trade standoff with the United States.
The dispute erupted after President Donald Trump stunned allies by suggesting he might seize Greenland, setting off warnings that retaliatory tariffs could plunge Britain into recession.
The Prime Minister has been working hard to calm nerves in Westminster and across Europe, emphasizing the high stakes of any trade confrontation and the risk it could damage both the UK economy and vital international alliances.
Trump Threatens Tariffs, Allies on Edge
Over the weekend, Trump sent shockwaves through Nato and EU countries, announcing plans to slap a 10 percent tariff on imports from nations opposing his Greenland plan, with rates potentially rising to 25 percent by June.
The countries targeted included the UK, Denmark, Finland, France, Germany, the Netherlands, Norway, and Sweden.
Economists quickly warned that such a move could shave tens of billions off the UK’s GDP, possibly tipping the country into recession.
Capital Economics predicted up to 0.75 percent of economic growth could be lost, a hit that might cost over £20 billion, particularly affecting carmakers and the pharmaceutical sector.
Starmer Pushes for Diplomacy Over Retaliation
Speaking at a Downing Street press conference, Starmer condemned Trump’s tariff threats as “completely wrong” but signaled he would avoid matching them with UK tariffs.
He stressed the importance of keeping the relationship with the US stable, noting that a trade war would cause “massive economic damage” and could weaken alliances that have long protected the UK.
“This is a serious situation,” Starmer said.
“Threatening tariffs on allies is the wrong approach. My focus is to ensure we do not reach that point.”
He also ruled out asking the King to cancel the planned state visit to Washington, emphasizing that diplomacy remains the top priority.
Greenland’s Future Should Be Decided Locally
Starmer made clear that the fate of Greenland is ultimately a matter for its people and the Kingdom of Denmark.
He warned that unilateral US action could trigger a “dangerous downward spiral” in transatlantic relations, with consequences for trade, security, and long-term political trust.
Despite Trump refusing to rule out military action, Starmer reassured the public that he does not believe the US is likely to invade the semi-autonomous territory.
A snap YouGov poll indicated broad public support for retaliatory tariffs, with 67 percent in favor.
Still, the Prime Minister remains firm that trade retaliation would be “not in our interests.”
EU Leaders Divided on How to Respond
Starmer has been actively lobbying European leaders to avoid a retaliatory tariff war.
While French President Emmanuel Macron has reportedly pushed for a “tariff bazooka” strategy originally designed for hostile states, European Commission President Ursula von der Leyen favors a more measured approach, according to discussions she had with Starmer over the weekend.
The crisis has also disrupted UK political schedules, with Starmer abandoning a speech in Yorkshire and Rachel Reeves cancelling a City engagement to attend the emergency press conference.
UK Politicians Speak Out Against Trump’s Threats
Across the political spectrum, UK leaders condemned Trump’s aggressive stance.
Conservative MP Kemi Badenoch called for a withdrawal of tariff threats “for the good of US and European security,” while Nigel Farage described the tariff threat as “wrong” and “hurtful.”
He said he planned to raise the issue with Trump administration officials at the upcoming Davos summit.
Economists, meanwhile, warned that a sudden hit from US tariffs could trigger a recession, but Starmer highlighted that the long-term consequences for UK security, intelligence, and nuclear capabilities could be even more severe.
Security Ties Remain a Priority
Starmer repeatedly stressed that maintaining a strong UK-US security relationship is crucial.
“Our nuclear capability is our most important deterrent, and that has helped keep us safe for many years,” he said.
He emphasized that, while public anger over Trump’s tariff threats is understandable, the UK must prioritize defense and intelligence cooperation above short-term political gains.
“The relationship with the US keeps us safe in ways that aren’t always visible, but it’s absolutely vital for every single person in this country,” Starmer added.
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