Forget soft Brexit if you strike trade deal with Trump, EU insiders warn Starmer

The EU has been in “constant contact” with the UK to warn against making trade concessions to Donald Trump that could harm Keir Starmer’s Brexit reset, sources have said.

Insiders in Brussels and the UK said EU officials were discussing with their British counterparts the “limits of what would be acceptable” amid fears that the Prime Minister could harm his reset with Brussels in his pursuit of a US trade deal that lowers tariffs.

It came as US Vice President JD Vance said Washington was “working very hard” with the UK to negotiate a “great” trade deal, and that there was a “good chance” of an agreement, as Starmer attempts to bring down 25 per cent tariffs on British steel, aluminium and cars, as well as a 10 per cent blanket import tax on other goods.

There are particular concerns in Brussels that UK concessions to the US on agri-food imports could harm Starmer’s goal of a deal to ease cross-border food trade with the EU and bring down costs for supermarket shoppers.

The EU is also said to have concerns that Trump could make demands of the UK to exempt American companies from carbon taxes due to come into force in 2027, and that any concessions in this area could harm plans to link British and European emissions trading schemes to bring down costs for businesses.

A Brussels insider said there was “constant contact between officials on the limits of what would be acceptable to the EU” and the “impact of any UK/US deal on the alleged Brexit ‘reset’.”

The i Paper understands that as well as the UK, the EU is in constant dialogue with other allies such as Canada and Japan on Trump’s tariffs and how any deals with the US could impact relations with Brussels.

David Henig, a former British trade official and UK director of the European Centre For International Political Economy, said he has “every expectation that messages to that effect have been passed from the EU to the UK given that food and drink is on the UK-EU agenda for the summit”.

The fears were raised as negotiations on Starmer’s Brexit reset picked up pace ahead of a landmark UK-EU summit on 19 May in Britain.

Brussels’ warnings about the planned sanitary and phytosanitary (SPS) rules – regulations to protect animal and plant health – came after Business Secretary Jonathan Reynolds was on Sunday again forced to rule out any watering down of UK food standards to appease the US, which has long coveted greater access to Britain for its agri-food exports.

Reynolds however hinted there could be room to negotiate on agri-food by pointing out that parts of the US food industry do meet UK standards.

The EU also has concerns over a mooted emissions trading deal, with Trump last week warning that he would hit countries that apply carbon taxes on shipping with tariffs.

The Brussels insider said they believed the US is using the prospect of a UK trade deal to drive a wedge and “play a political game to damage the EU-UK reset”.

Prime Minister Sir Keir Starmer has repeatedly insisted he does not have to choose between the EU and US over trade.

In February when asked at a press conference in Brussels during a visit with EU leaders, he said: “Both of these relations re very important between us. We are not choosing between them.”

Paul Adamson, chairman of the EU-UK Forum, agreed that Washington holding out an olive branch to the UK on trade appeared designed to “drive a wedge between the UK and Europe”.

“You see American commentariat on social media to that effect.

“The last thing the Americans want is for the UK and Europe to be united and come closer together.

“I hope the Government sees through that.

“I think even without Brussels ‘telling the Brits’, they would know things like hormone-treated beef, chlorinated chicken are not going to be compatible with any rapprochement with the EU.”

A senior Labour MP added: “Don’t let the Americans determine your negotiating strategy, it’s like letting a toddler decide where you go – they keep changing their mind.”

A UK Government spokesperson said: “We want to deliver a UK-EU strategic alliance to grow the economy, boost living standards, and protect our borders.

“We will not provide a running commentary on speculation.”

The European Commission said it would not comment.