The UK could strike a game-changing trade deal with the US under Donald Trump, while also rebuilding its bridges with the EU, positioning itself as a “beacon of stability” in an unpredictable world, according to a leading economist.
Andy Haldane, former chief economist at the Bank of England, believes Keir Starmer’s government has an opportunity to show that the UK is once again “open for business”. By working with both Washington and Brussels, Haldane argues, Britain could reap significant economic rewards at a time when other nations seem to be turning inwards.
Following Trump's election victory, the prime minister has found himself juggling competing pressures to side with either the US or the EU in trade talks, just as he had started to rekindle relations with Europe. But Haldane suggests Britain doesn’t need to choose – it could pursue a dual trade policy that spans the Atlantic. "I hope the government can successfully pat its head and rub its tummy at the same time," he told The Guardian, hinting at the complexity of balancing such a strategy.
“Of course, we should energetically seek an improved deal with the EU,” Haldane emphasised, noting the challenges ahead but reaffirming the government's commitment to mending ties with Europe. “That shouldn’t prevent us from pursuing a free trade arrangement with the US, even under a new Trump administration.”
He added that Brexit, despite its controversies, has at least opened the door for the UK to have these parallel conversations. “Before, it would have been impossible. Now, we can start building relationships on both sides of the Atlantic. That’s an opportunity we shouldn’t miss,” he added.
Yet, some experts warn that Trump's return to power could actually push Britain closer to the EU. They argue that negotiating a trade deal with the US alone could be fraught with difficulties, especially as Trump has threatened severe tariffs – up to 20% on US goods imports and even higher rates for China and Mexico.
On Monday, Keir Starmer underscored his European credentials by joining Emmanuel Macron in Paris for the French Armistice Day service, a strong gesture of solidarity with Europe amidst growing concerns about Trump’s impact on global trade stability.
Trump's campaign rhetoric included threats of tariffs of up to 100% on some imports, sparking fears of renewed trade conflicts. Andy Haldane, now the chief executive of the Royal Society of Arts think tank, warned that such moves could reignite global inflation, hurting the UK economy by driving up borrowing costs for British households.
However, Haldane remains broadly optimistic. “The UK has a unique chance to stand out as a safe haven in a volatile world,” he said, pointing to Britain’s stable government and renewed focus on economic investment. “If we can play our cards right, this could be a real moment for the UK to shine.”
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