‘Renegade’ UK could be spared from Donald Trump’s tariffs, US governor says
The UK could be spared the impact of Donald Trump’s proposed trade tariff increases on foreign imports, a US governor has told Sky News.
In the aftermath of the Republican candidate’s decisive election win over Kamala Harris this week, attention is turning to what the former president will do on his return to the White House.
Mr Trump has said he wants to raise tariffs – taxes on imported products – on goods from around the world by 10%, rising to 60% on goods from China, as part of his plan to protect US industries.
Follow live: Trump wins Arizona – sweeping all 7 swing states
But there are fears in foreign capitals about what this could do to their economies. Goldman Sachs has downgraded its forecast for the UK’s economic growth next year from 1.6% to 1.4%, while EU officials are anticipating a reduction in exports to the US of €150bn (£125bn).
However, New Jersey governor Phil Murphy – a Democrat – says he believes Mr Trump may consider not including the UK in the tariff plans.
Speaking on Sunday Morning with Trevor Phillips, the governor said he cannot speak for the president-elect but he has a “good relationship” with him.
His gut feeling is that Mr Trump will not impose tariffs on goods from allies like the UK. “But if I’m China, I’m fastening my seatbelt right now,” he said.
Mr Murphy said that Mr Trump may look favourably at the UK after its departure from the European Union.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
Tap here
Asked about the risk of trade sanctions, UK Treasury minister Darren Jones told Sky News the government’s position is to “support free trade”.
He described the UK-US relationship as “very strong” and “very fruitful” for both economies.
“And of course, we want to protect that and strengthen it in the years ahead,” Mr Jones said.
“And I think president-elect Trump has said that he recognises the important relationship the US has with the UK. And that’s the basis on which we will be cooperating in future years.”
According to The Telegraph, Mr Trump is considering offering the UK a special deal that would exempt British exports from billions of pounds of tariffs.
“Donald Trump (has) some sympathy with the renegade who has courage,” Mr Murphy said. “I think there’s some of that. I think that’s a card that can be played. We’ll see.”
Asked about whether UK Prime Minister Sir Keir Starmer can build a rapport with the incoming president, Mr Murphy said: “I’ve been able to find common ground with President Trump, and I’m a proud progressive, although I’m a cold-blooded capitalist, which is probably the part of me that President Trump resonates with.”
Chancellor Rachel Reeves has said she is “confident” trade flows with the United States will continue despite the tariff proposal.
Will Brexit help UK in Trump trade talks?
Jon Craig
@joncraig
Could Brexit help Sir Keir Starmer and the UK government in trade negotiations with President Trump – who calls himself “tariff man” – and the US?
The suggestion – ironic, given the PM’s hostility to Brexit and his pledge for a “reset” with the EU – has been made by a Trump ally and confidant, albeit a leading Democrat.
The claim comes from Phil Murphy, governor of New Jersey, in an interview for Sunday Morning with Trevor Phillips on Sky News.
Murphy says he has a good relationship with Trump, who has a palatial home he calls the Summer White House, a 500-acre estate and a golf club at Bedminster, New Jersey, just 45 minutes from Trump Tower in New York.
He says his “gut feeling” is that Trump has sympathy with the UK for having the courage to pull out of the EU, “this big bureaucratic blob” and “that’s a card that can be played” by the UK in trade talks.
Really? As Trevor politely pointed out, that might benefit the UK if the prime minister was Nigel Farage rather than Sir Keir.
Mr Farage, however, speaking at a Reform UK regional conference in Exeter, described Trump as a “pro-British American president” who’d give the UK “potentially huge opportunities”.
But there’s one problem, according to the Reform UK leader. Favours from Trump will only come, he claims, “if we can overcome the difficulties that the whole of the cabinet have been rude about him”.