After all that — the chummy Oval Office meeting, the extraordinary royal invitation, the paeans to the “special relationship” — Britain and its solicitous prime minister, Keir Starmer, still got swept into President Trump’s tariffs, along with the European Union and other major American trading partners.
Mr. Trump imposed his basic tariff of 10 percent on Britain, while hitting the European Union with 20 percent. That drew sighs of relief from Mr. Starmer’s aides, who said the difference would protect thousands of British jobs. They claimed vindication for Mr. Starmer’s charm offensive toward the American president; others said it was a dividend of Britain’s decision to leave the European Union in 2016.
Yet in another sense, it was a Pyrrhic victory: Britain was subject to the same blanket tariff as dozens of countries, even though the United States runs a trade surplus with Britain, according to U.S. statistics.
Britain clearly hopes to strike some kind of trade deal with Mr. Trump down the road, which could spare it the tariffs’ lasting effect. On Thursday, Mr. Starmer told business executives that the British would react with “cool and calm heads.”
The question is whether he will stick to his strategy — resisting pressure to impose retaliatory tariffs, for example — or fall into line with other countries, like Canada, in striking back against the United States. Downing Street said it would not impose tit-for-tat measures while trade talks were underway.
“His strategy up till now has been perfectly understandable,” said Jonathan Portes, a professor of economics and public policy at King’s College London. “If I were him, I would have done the same. Now he needs to avoid confrontation for the sake of it, but there’s no point in appeasement either.”
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Source: Economy - nytimes.com