Donald Trump has put a UK trade deal on the back burner in a blow to Keir Starmer‘s hopes of getting agreement before his Brexit ‘reset’, it was claimed today.
The US president is said to have made clear that Britain will not be in the first ‘phase’ of pacts that he is hoping to strike.
The priorities emerged as the PM pushes for trade terms that could spare Britain from the worst of Mr Trump’s tariffs.
Ministers have been scrambling to finalise terms before a summit with the EU on May 19 – when the UK will unveil closer relations. Mr Trump has claimed the bloc was created to ‘screw’ America, and hailed Brexit.
A recent report by the US Department of Agriculture noted that ‘dynamic’ alignment with Brussels food standards could ‘impact’ a free trade agreement with the US.
A source with knowledge of US talks told the Guardian: ‘The US has now decided to negotiate its trade deals in three phases.
‘The government has been told it will not be in phase one – though that leaves the door open to be in either phase two or three.’
Sir Keir and Mr Trump raised the prospect of a Transatlantic trade deal when they met at the White House in February – before the president unveiled his ‘Liberation Day’ tariff barrage.
Donald Trump is said to have made clear that Britain will not be in the first ‘phase’ of pacts that he is hoping to strike
Ministers have been scrambling to finalise terms before a summit with the EU on May 19 – when Keir Starmer will unveil closer relations (pictured with Ursula von der Leyen)
Hopes have been dwindling of getting an exemption from the ‘baseline’ 10 per cent charges on goods entering America.
But the UK has suggested cutting duties on US car imports as a quid pro quo to reduce eye-watering 25 per cent tariffs on UK car exports, steel and aluminium.
Sir Keir is also keen to head off the threat that the pharma industry will be targeted in another wave of levies.
However, he has ruled out several concessions the US is thought to be looking for as the price of a deal.
These include reductions in food standards rules that limit imports of American agricultural goods and changes to online safety legislation that some US politicians believe limit freedom of speech.
Economists have warned that Mr Trump’s policies are set to spark a global slowdown and wreak havoc with Rachel Reeves’ attempts to revive growth.
Sir Keir has repeatedly rejected suggestions that the UK will need to choose between partnerships with Europe or America, saying the national interest ‘demands that we work with both’.
Rachel Reeves held talks with her US counterpart Scott Bessent last week as she scrambled to find a way of dodging Donald Trump’s tariffs
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Donald Trump ‘puts UK trade deal on back burner’ amid US warnings that Starmer’s Brexit ‘reset’ will block pact