Tories issue challenge against Trump’s ‘mistake’ on trade
The Conservatives have issued a direct challenge to President Trump on the benefits of free trade as shadow Chancellor Mel Stride said tariffs risked undermining transatlantic relations.
In a speech at a conference hosted by British-American Business, Stride argued that free trade was “worth defending” as he took aim at President Trump’s protectionist policies.
He said the Conservatives would address any “mistake” made by the Trump administration on trade, raising the alarm on its frequent moves to put economic ties with close allies under threat.
“Tariffs are not the answer to our economic troubles,” Stride said.
“Increasing trade barriers is unquestionably a step backwards and will leave everyone worse off, so the approach of the current US administration is concerning.
“Being close partners, we have a duty to be honest when we see our friends making a mistake.”
He also hit out at Trump’s use of tariffs in threats against the sovereignty of Greenland, adding that protectionist policies are the “tool of populists”.
Stride’s speech attempts to draw a unique party position on trade in comparison with other parties across Westminster as the shadow chancellor took swipes at Reform UK for failing to stand up to Trump’s protectionist policies and at Labour for looking to boost trade ties with China.
It also reflects the tricky diplomacy that political leaders face in responding to Trump.
Trump’s economic threats
The US president rowed back on his tariff threats against the UK and other major European countries after a security deal on Greenland was struck.
The UK also struck the first trade deal after Trump announced sweeping tariffs in last year’s ‘Liberation Day’ address from the White House.
Automotive manufacturers have a 10 per cent tariff rate compared to 25 per cent for other countries for the first 100,000 car exports.
Other goods exported to the US suffer from the baseline 10 per cent tariff rate upon entry into the country.
The size of the UK’s total trade with the US is some £329.5bn compared to around £102bn with China. It imports more in goods from the US than it exports, while the opposite is true for China.
Stride warned that it was more crucial that the US and UK built closer ties against a rising China, which had taken an “aggressive” approach on international trade through its Belt and Road Initiative, state control and anti-competitive practices in subsidies and non-tariff barriers.
“As with any community, whether of people or of nations, the whole system can be strained if just one member chooses not to play by the rules.”