David Lammy says Trump has taken US economic policy back 100 years with ‘return to protectionism’ – UK politics live | Politics
Lammy says Trump has taken US economic policy back almost 100 years with 'return to protectionism'
David Lammy, the foreign secretary, is at the Nato HQ in Brussels this morning, where Nato foreign ministers are meeting. Speaking to the media, he said President Trump was taking US economic policy back almost a century by embracing protectionism. He said:
The United Kingdom, like France, is a great maritime nation.
We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century.
As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.
We will put their national interest first, and it’s in their national interests to be negotiating with the United States an economic agreement at this time, but keeping all options on the table.
David Lammy speaking to the media at the Nato HQ in Brussels this morning, where Nato foreign ministers are meeting. Photograph: Geert Vanden Wijngaert/AP
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UK and other G7 allies should sideline US by deepening their own free trade links, says former Treasury minister Jim O'Neill
Jim O’Neill, the former Goldman Sachs chief economist and former Treasury minister, has said Britain and other non-US G7 nations should respond to the Trump tariffs by deepening their own free trade links.
In an interview on the Today progamme, he said that it was perfectly feasible for leading nations still committed to free trade to in effect sideline the US, and trade more with each other.
O’Neill, who served as a Treasury minister in David Cameron’s government for a year and who is now a crossbench peer, said that G7 countries could take the lead in this, but that India and China should be included too.
He said the government was right to carry on talks with the US about a possible trade deal. But he went on:
But I think our approach should be to slightly stand back and think, what does Britain want, and can it get from the rest of the world, and what can we contribute?
And in that regard, it’s important to realise that the rest of the G7, except the US, collectively are the same size as the United States. And I would have thought a very sensible thing to be doing is having a serious conversation with the other members about actually lowering trade barriers between ourselves, especially for cross-border services, which is what the UK has a marginal advantage in, which would be very healthy for all of those countries because it’s the one area of global trade where most countries haven’t done enough in.
O’Neill said that the US was on a “kamikaze path” and that its tariffs were “rather insane”. But other countries had the clout to resist, he suggested.
Asked if it was possible to just ignore the US, he replied:
The US is the biggest economy in the world still, but it’s not anything like as important for global trade as it is in global finance and global security.
So if the US wants to do this [impose global tariffs], then it’s perfectly within the bounds of feasibility for other large economies to structure themselves, stop this addiction to the US consumer, and start to consume more themselves, as well as between each other.
O’Neill said, by turning his back on free trade, Trump was turning his back on “the major thing which has made the United States so prosperous over the last 40 to 50 or more years”. Other countries “shouldn’t get sucked into the same game”, he said, because overall, “whether it’s life expectancy or wealth”, the whole world has benefited from this model.
The Liberal Democrats and the Greens have both said Keir Starmer should respond to the Trump tariffs by strengthening economic links with countries like Canada and the EU. But Starmer has rejected this idea, saying it would be wrong to choose between being close to the US and being close to Europe.
Jim O'Neill. Photograph: Dominic Lipinski/PA
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Lammy says Trump has taken US economic policy back almost 100 years with 'return to protectionism'
David Lammy, the foreign secretary, is at the Nato HQ in Brussels this morning, where Nato foreign ministers are meeting. Speaking to the media, he said President Trump was taking US economic policy back almost a century by embracing protectionism. He said:
The United Kingdom, like France, is a great maritime nation.
We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century.
As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.
We will put their national interest first, and it’s in their national interests to be negotiating with the United States an economic agreement at this time, but keeping all options on the table.
David Lammy speaking to the media at the Nato HQ in Brussels this morning, where Nato foreign ministers are meeting. Photograph: Geert Vanden Wijngaert/AP
Minister won’t back Trump’s claim that Starmer ‘very happy’ about how UK affected by US global tariffs
Good morning. The British government, like the rest of the world, is still preoccupied with trying to absorb the consequences of Donald Trump’s decision to obliterate global free trade with a blizzard of tariffs. In London, the stock market has opened, and shares are still heading down. Graeme Wearden has the latest on that on his business live blog.
James Murray, a Treasury minister, has been giving interviews this morning. In terms of explaining the government’s policy, he did not say anything that went beyond what Keir Starmer and Jonathan Reynolds were saying yesterday. While not ruling out retaliatory tariffs, the government views them as a last resort and hopes that the trade deal it is negotiating with Washington will lead to the UK tariffs being reduced, or removed completely.
But Murray did have to answer a question about whether Donald Trump was right when he told reporters on Air Force One yesterday that Starmer was “very happy about how we treated them with tariffs”. It is rare to hear anyone from the UK government say anything negative about Trump in public, but even the ultra-loyalist, fourth-most-senior Treasury minister drew the line at pretending Trump was right about this. In response to the question, Murray told Times Radio:
We’re disappointed at tariffs being imposed globally. We are in a better position than many other economies moving forward because we’re on the lowest band of tariffs. But our focus is to get that economic deal.
There is not much formally in the diary today (parliament is not sitting), but politics never stops, and there is bound to be news, on the Trump tariffs and other matters. There will be a lobby briefing at 11.30am.
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