Trump would target EU rather than UK in trade war as he wants to see a successful Brexit, former staffer claims

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A potential trade war with the United States may not be as bad as feared, a former political appointee from the last Trump administration said. He argued that the president-elect would target the European Union more than the United Kingdom because he wants a successful Brexit.

Peggy Grande, a former political appointee of Donald Trump, told The Independent that he was likely to sign a preferential trade deal with the UK and thought tariffs would have a greater impact on the EU than on the UK.

It comes amid concerns about a global trade war after Republican politicians pledged to impose tariffs of 10% on all goods imported from U.S. trading partners and up to 60% and 100% on China and Mexico.

But Ms. Grande, who also served as Ronald Reagan's senior adviser after he left the White House, said Mr. Trump believes in a special relationship, adding that she expected tariffs, if any, would have a bigger impact on the EU than on the UK.

Donald Trump is very fond of the UK and wants to see Brexit fully implemented successfully, and wants to help by offering preferential trade deals to the UK.

Rachel Reeves could clash with president-elect (PA Wire)

Going back to the US-UK free trade deal he was pushing for during his first term, I expect he will pick up where he left off, especially with tariffs on China.

The more the two countries unite to put pressure on China, the more it will benefit both countries from a trade perspective. But it takes both sides. Trump is dedicated. Is this the case in the UK too? That hasn't been revealed yet.

But former British ambassador to the United States Kim Darruck said she expected Trump to follow through on his threats, potentially putting Rachel Reeves on a collision course with the president-elect.

The Prime Minister, who is preparing a backlash against possible tariffs, is expected to use his keynote speech this week to promote free and open trade between countries as a cornerstone of British economic policy.

She is expected to use her first Mansion House speech to set out her post-Budget growth plans and make the case that global business connections have supported economies around the world during the crisis. She will call for continued partnerships with Europe, the Middle East, Asia and the United States.

Mr Darroch said he thought there would be a stark choice between Britain siding with the EU or sacrificing our agriculture.

President-elect Donald Trump has previously spoken about raising tariffs on goods imported into the United States from around the world (AP)

Darroch commented on President Trump's comments on free trade in The Observer: When it comes to tariffs, I expect the result will be the exact opposite of a simple threat.

I think Trump will immediately impose tariffs on all American imports and tell me if I want them removed, give me something to rebalance trade.

The EU will almost certainly retaliate and the UK will face difficult decisions. Will EU retaliatory tariffs be aligned? Or do you pursue bilateral deals, such as free trade agreements?

I think Trump will propose an FTA like he did in 2017. But as then, America's top demand will be unrestricted access to the British market for hormone-treated beef, a low-cost product from the American agricultural sector. Contains chlorine-washed chicken. So the stark choice will be whether to side with the EU or to sacrifice agriculture.

Anger is already growing among British farmers over the UK government's decision to extend inheritance tax on agricultural property.

But New Jersey Gov. Phil Murphy said his gut tells him the president-elect will not impose tariffs on allies like Britain.

Asked about this issue, a Democratic lawmaker said: Do I believe it? I'm not sure. If you and I were sitting down and talking about the People's Republic of China, I'd believe it.

On Sunday, Chancellor of the Exchequer Darren Jones said Whitehall officials would consider a range of scenarios amid growing concerns about the impact of tariffs.

Mr Jones said President Trump recognized the important relationship between the UK and the US, adding: The Government's position is that we support free trade and the trading relationship between the United States and the United Kingdom.

Government sources confirmed officials will continue to receive advice to ensure the UK is in the best possible position.

“We look forward to working closely with President Trump’s team to strengthen the UK-US trade relationship to support businesses on both sides of the Atlantic,” the source said.

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