Trump tariffs paused as UK and EU engage in talks

President Trump announced 25% tariffs on Canada and Mexico over the weekend. The tariffs have since been paused. He said he would do the same to the EU. But he suggested a deal with the UK was possible.

Prime Minister Keir Starmer said both the US and EU are important to the UK. He met with EU leaders in Brussels. It was the first visit by a UK leader since Brexit.

NATO chief Mark Rutte said there are always issues between allies, but they won't affect their commitment to Ukraine. He said NATO must keep supporting Ukraine, which will let Ukraine negotiate with Russia from a strong position.

Rutte said 2% of GDP on defense is not enough. Members must boost funding quickly. Only 23 of 32 NATO members meet the 2% target. The UK spends 2.3% now. Starmer said they will reach 2.5%.

Starmer called for more UK-Europe military cooperation. This includes improving mobility, logistics, R&D, and industry ties. He also wants to protect against state threats to infrastructure.

The UK wants better EU ties. But this could upset the US and risk a trade war. The EU may not like the UK siding with the US over Europe.

No. 10 said Starmer trusts Trump. They have a balanced £300bn trade relationship. They are each other's biggest investors, with £1.2tn.

Trump's tariffs caused stock markets to fall in Europe and Asia. Carmakers were hit hard. The UK was affected less than the EU.

A study said a 20% US tariff on UK exports could cost the UK £22bn. Trump thinks tariffs will help the US economy and jobs, but prices may rise for consumers.

Mexico said the 25% tariffs were delayed after a deal. Mexico will send 10,000 troops to fight drug trafficking. Canada said Trump's tariffs are paused for 30 days.

EU leaders want constructive talks with the US, but they will respond firmly if unfairly targeted. They say trade wars have no winners, and China would benefit.

Trump said the UK was "out of line," but a deal was possible. He said talks with Starmer were "very nice."

The UK also wants to ease EU food trade rules and cooperate on emissions. It wants to recognize professional qualifications and help musicians travel more easily.

The EU wants a youth mobility plan. It would let young people study and work in the UK and EU. But UK ministers reject the idea.

The UK may join a trade pact for tariff-free goods trade. The Conservatives say the government wants to reopen Brexit divisions. The Liberal Democrats want a new UK-EU customs union.

Liberal Democrat leader Ed Davey called Trump a bully and said the UK should work with allies against him.
 

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