Talks begin over UK-US trade deal ahead of President Trump's inauguration

Sir Keir Starmer and Donald Trump have already begun discussing a potential free trade deal ahead of the President’s inauguration today, a Cabinet minister has said.

The controversial Republican will be confirmed as the new President in a ceremony which has now been moved inside due to expected sub-zero temperatures.

The swearing-in of the president and vice president that traditionally takes place on the steps of the US Capitol, but will now take place inside the building’s Rotunda.

Hide Ad
Hide Ad

President-elect Trump arrived in Washington on Saturday evening to celebrate with family, supporters and political allies.

He addressed the crowd at his Trump National Gold Club in Sterling, Virginia, giving shoutouts to state Governor Glenn Youngkin and Amazon founder Jeff Bezos.

He also declared his Middle East envoy Steve Witkoff a “great negotiator” after his role in helping to negotiate a ceasefire deal between Israel and Hamas that took effect on Sunday morning after several hours' delay.

Ahead of Mr Trump’s inauguration, Chief Secretary to the Treasury Darren Jones told the BBC’s Sunday with Laura Kuenssberg programme that “the Government has prepared for all scenarios” when it comes to potential tariffs.

Hide Ad
Hide Ad

“They’re hypothetical at this stage, we need to see what the Trump administration do,” he said.

President-elect Donald Trump, Melania Trump and family watch fireworks at Trump National Golf Club ahead of his inaugaration. Credit: Alex Brandon - Pool/Getty ImagesPresident-elect Donald Trump, Melania Trump and family watch fireworks at Trump National Golf Club ahead of his inaugaration. Credit: Alex Brandon - Pool/Getty Images
President-elect Donald Trump, Melania Trump and family watch fireworks at Trump National Golf Club ahead of his inaugaration. Credit: Alex Brandon - Pool/Getty Images | Getty Images

Earlier this week, Sir Keir told the Financial Times that “tariffs aren’t in anybody’s interests” and that the UK ambition “is to have a deal of some sorts with the US, a trade deal. That’s where our focus is”.

Mr Jones also said “there’s a whole range of opportunities for us” and “Donald Trump is well known for wanting to do a good deal”.

He revealed that Sir Keir and Mr Trump discussed this when they had dinner in New York in September, and that the President’s transition team have been meeting senior Government officials.

Hide Ad
Hide Ad

Mr Jones said: “There are definitely opportunities to deepen our trading relationships, not least in areas for example like technology, science and research.

“We’re keen to pursue those opportunities with the new administration, and I think that’s something that could be a positive outcome.”

Asked if he was worried about resentment between the two sides with the change of government approaching, he said: “No. Obviously the UK and the US have a long and deep-rooted relationship.

US free trade deal

A UK-US free trade deal was seen as one of the great Brexit benefits by pro-Leave campaigners.

They hoped that after leaving the EU, the UK could easily negotiate an agreement with the US.

However, when Joe Biden got into power this was quickly knocked back due to his close links with Ireland, which remained in the bloc.

There is hope that there may be a greater chance with Donald Trump returning to power, however it goes against his core message of bringing in tariffs.

The chief fear in Britain with a US free trade agreement has been that chlorinated chicken and hormone-fed beef could be imported. Both types of meat would breach UK food safety standards.

Recent reports have suggested US negotiators would push for these to be included in any deal, however Chief Secretary to the Treasury Darren Jones said the focus is on tech, science and research.

“We’ve got lots of great assets, lots of great capabilities.

Hide Ad
Hide Ad

“What we say in the world matters and our economy, our security, our defence, our values are strongly intertwined with the Americans irrespective of who their president is.”

The Government is expected to be represented at Monday’s ceremonies by outgoing UK ambassador to the US Dame Karen Pierce.

Former New Labour minister Lord Mandelson was announced as Dame Karen’s replacement in December and Mr Jones said he is confident the appointment will be approved by the Trump team, following reports there could be some uncertainty over Washington giving the decision the nod.

He said: For the first time in, I think, maybe 50 years, this is the first time that a British Prime Minister has picked a politician to be the ambassador in DC.

Hide Ad
Hide Ad
Chief Secretary to the Treasury, Darren Jones, has declined to say when defence spending will increase to 2.5 per cent - a Labour pledge in its manifesto. He did not clarify if the pledge will be made by the end of parliament in 2029.Chief Secretary to the Treasury, Darren Jones, has declined to say when defence spending will increase to 2.5 per cent - a Labour pledge in its manifesto. He did not clarify if the pledge will be made by the end of parliament in 2029.
Chief Secretary to the Treasury, Darren Jones, has declined to say when defence spending will increase to 2.5 per cent - a Labour pledge in its manifesto. He did not clarify if the pledge will be made by the end of parliament in 2029. | Lucy North/PA Wire

“We have brilliant diplomats and Karen Pierce has done a brilliant job, but the reason the Prime Minister picked Peter Mandelson was because we want to do things differently.”

Reform UK leader Nigel Farage and former prime minister Liz Truss are among the other British political figures who have travelled to DC for today’s ceremonies.

Shadow Foreign Secretary Dame Priti Patel is also in Washington to attend the inauguration on behalf of the Conservative Party.

She told the BBC it is “absolutely vital” that transatlantic trade deal talks get back under way.

Hide Ad
Hide Ad

Dame Priti said: “I think this Government, the Labour Government … Keir Starmer and David Lammy, should resume talks over a free trade deal. We set the work in motion when we were last in government.

“When it comes to tariffs, that is not conducive at all to economic growth and prosperity, let alone economic security.”

It will be the first time since President Ronald Reagan took the oath of office in 1985 for his second term that the ceremony will be moved inside the US Capitol due to weather

“I think we made the right decision. We’ll be very comfortable now,” Mr Trump told NBC News.

Hide Ad
Hide Ad

He said he is preparing to roll out a series of executive orders and other actions in the first days of his new administration.

He confirmed he will “most likely” grant an extension that might allow TikTok to keep operating in the US beyond Sunday, when a law that prohibits mobile app stores and internet hosting services from distributing TikTok to US users takes effect.

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.

News you can trust since 1754
Follow us
©National World Publishing Ltd. All rights reserved.Cookie SettingsTerms and ConditionsPrivacy notice