Amid Trump's threats of tariffs, Starmer sets up 'mini-Cabinet' to negotiate UK-US trade deal

British Prime Minister Sir Keir Starmer has put in motion a plan secure a trade deal with the incoming Donald Trump administration of the United States.

The development comes as Trump has indicated he would penalise countries with higher tariffs that do not trade with the United States on terms that appease him. He has already pledged to impose steep tariffs on Mexico and Canada and has indicated imposing tariffs on more countries soon after assuming office.

To negotiate the trade deal with Trump, Starmer has set up a ‘mini-Cabinet’ comprising senior ministers and officials, according to The Daily Telegraph.

While Starmer chairs the mini-Cabinet, National Security Adviser Jonathan Powell convenes these meetings.

Since the Covid-19 pandemic, the British economy has been performing poorly and tariffs could deal a major blow. The Boston Consulting Group (BCG) has estimated that the British economy would lose up to £2.5 billion per year if Trump would impose 20 per cent tariffs. The analysis said that automobile, aerospace, pharmaceuticals, and machinery sectors would be affected the most.

Starmer counts on Trump’s ’longstanding affection’ for UK

Even as Trump’s principal ally, Elon Musk, is plotting to overthrow his government, Starmer is counting on Trump’s “longstanding affection” for the United Kingdom to come to a negotiated solution the threat of tariffs.

“Since our first meeting in September, the president and I have spoken about the need to deepen and invest in the trans-Atlantic relationship. We will continue to build upon the unshakeable foundations of our historic alliance as we tackle together the global challenges we face and take our partnership to the next level focused on shared opportunities ahead for growth,” said Starmer on Sunday, as per The Telegraph.

The mini-Cabinet that Starmer has set up includes Chancellor Rachel Reeves, Foreign Secretary David Lammy, Business Secretary Jonathan Reynolds, and NSA Powell.

In a separate interview with Financial Times, Starmer said that tariffs were not in anyone’s interests.

“Tariffs aren’t in anybody’s interests. Our ambition is to have a deal of some sorts with the US, a trade deal. That’s where our focus is,” said Starmer.

The Telegraph has reported that senior Foreign Office officials have been urging the business department to speed up plans for a UK-US trade deal.

Darren Jones, the Chief Secretary to the Treasury, said that Trump is “well known for wanting to do a good deal”.

“I think there are plenty of good deals for us to do together. There are definitely opportunities to deepen our trading relationships, not least in technology, science and research… and I think that’s something that could be a positive outcome,” said Jones.