Labour's latest mission: Keep the special relationship alive
8 November 2024
| by Field Team
While Labour’s heart may lie with the Democrats, the party’s head aligned quickly with the political and diplomatic imperative of relations with President-elect Donald Trump.
Keir Starmer was among the fastest world leaders to offer congratulations and the Premier will have been pleased to get an early phone call with the incoming 47th President. This, though, was the easy part, and Trump poses a particular set of challenges.
Firstly, there are the obvious difficulties. We know from his first term President Trump is erratic, that he engages with authoritarians around the globe, and that he is willing to ignore democratic processes.
Second, at the heart of his re-election platform is an even more protectionist economic policy than last time. Tariffs on pretty much all goods imported to America appear likely and the UK is heavily exposed – our businesses sell more goods to the US than to any other nation, representing almost 16% of our total. In the context of Rachel Reeves’ Budget (just 10 days ago) this is a serious challenge.
Reeves made a huge bet business would suck up the tax rises and growth would surprise on the upside, allowing her to invest in public services towards the end of the Parliament. A sharp fall in exports to the US, or, even worse, a global slowdown inspired by a doom-loop of retaliatory tariffs, would squeeze the already anaemic growth forecast even more.
A backdrop of senior Labour figures organising campaign support for Harris, drawing Trump’s ire and a lawsuit for foreign interference, doesn’t help the picture much. There is also the issue of Elon Musk, who has become Trump’s right-hand man and looks set to have a key role in his administration, and with whom the Government became embroiled in a war of words over the summer.
There is one senior Labour figure who is under serious pressure. Describing someone as a "tyrant" and "a woman-hating, neo-Nazi-sympathising sociopath", as current Foreign Secretary David Lammy did of Trump in 2018 whilst on the backbenches, is rarely a good foundation for a productive relationship.
In order to effectively manage these challenges, Starmer himself will have to build a relationship with Trump, as Theresa May and Boris Johnson successfully did. A defence lawyer by trade, used to dealing with a range of difficult characters (and convicted criminals) Starmer will have to find a way of working with Trump, and fast.
(Photo by Bloomberg)