Trade war in no-one’s interest, says PM in face of Trump threats

Prime Minister Sir Keir Starmer has said a trade war is in “no-one’s interest” after Donald Trump threatened to impose a 10% tax on imports from the UK and other countries who oppose his plans to take control of Greenland.

Making a speech in Downing Street, Sir Keir said the “right approach” was “through calm discussion” and that retaliatory tariffs on the US were “not the right way to resolve differences”.

He reiterated his belief that decisions about the island should rest with the people of Greenland and Denmark.

Principle “cannot be set aside”, he said, but he vowed to take a “pragmatic” approach, emphasising both the economic and military importance of the UK-US relationship.

He said the situation was “very serious” and that it was a “moment for the whole country to pull together”.

He welcomed the support he had received from the Conservative leader Kemi Badenoch on the issue of Greenland and criticised those who “think an angry social media post or grandstanding is a substitute for hard work”.

“It may make politicians feel good, but it does nothing for working people whose jobs, livelihoods and security rely on the relationships we build across the world.”

Defending his decision to pursue a close relationship with Trump, the prime minister said it had delivered “hundreds of billions of pounds” of investment.

Asked if he would consider imposing retaliatory tariffs, the prime minister replied: “We have not got to that stage, my focus is making sure we don’t get to that stage.”

European leaders are expected to raise the future of Greenland with Trump this week when he travels to Davos for World Economic Forum.

The prime minister is not currently due to attend but it remains an option as the week progresses.

The US president has argued that a “complete and total purchase” of the Danish territory is essential for US and global security.

Located between North America and the Arctic, Greenland is a useful base for early warning systems for missile attacks as well as monitoring vessels in the region.

Trump has said: “If we don’t take Greenland, Russia or China will take Greenland.”

On Saturday he said he would place a 10% levy on goods exported to the US from the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland.

The tax would come into force from 1 February, rising to 25% on 1 June.

If Trump does follow through on his threat to impose tariffs it could be damaging to the UK economy, whose biggest overseas customer, in terms of individual companies, is the US.

Economists have estimates the new tariffs could take 0.5% off GDP.

Over the weekend, Badenoch said she agreed with the prime minister on the sovereignty of Greenland adding that tariff threats are “a terrible idea”.

Speaking to BBC Breakfast, Liberal Democrat leader Sir Ed Davey – who has repeatedly criticised the prime minister’s efforts to pursue a close relationship with the US president – urged the government to “get tough on Donald Trump” adding: “If you do that, he has a history of backing down.”

“Unfortunately up until now our government has rolled over.”