UK HAVING 'FRANK' TALKS OVER US TARIFF THREATS, TRADE SECRETARY SAYS

LONDON, Jan 20 (Bernama-PA Media/dpa) -- The UK’s relationship with Donald Trump’s US administration is being tested by the Greenland crisis, Trade Secretary Peter Kyle said, reported PA Media/dpa.

He said that disruption is becoming normalised in the world economy, and that the Government was having “frank” talks with US officials over the threat of tariffs being imposed on European countries opposed to Trump’s goal of annexing the semi-autonomous Danish territory.

Kyle said tariffs are a “lose-lose” policy and “the stakes are always very high” but there could be “opportunities in adversity” for British exporters.

The Government is in regular contact with US Commerce Secretary Howard Lutnick and US trade representative Jamieson Greer, Kyle said.

“We have good, strong relationships. One of the things I’ve enjoyed in getting to know the US administration has been that they are all individual characters and very unique characters.

“I think very often when you meet a government representative, we all kind of project the collective personality of the government so that people see consistency.

“Part of the uniqueness of this administration is that they are an administration of real characters who are all quite unique, and it’s been really interesting and rewarding getting to know them.

“But at moments like this, relationships are tested. And yes, of course, we’re having frank conversations.

“But in my experience, all of the key protagonists in the administration thrive on frank conversations and wouldn’t have it any other way.”

Trump has said he will impose 10 per cent tariffs on imports from the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland from February 1, rising to 25 per cent from June, unless a deal is reached for the “complete and total purchase of Greenland”.

Asked if tariffs could be avoided, Kyle said: “We are doing what we know has worked, and doing what you know has worked is a safer route to success, or at least mitigate some of the uncertainties, at times like this.

“In my experience in politics, all behaviours get normalised, and we’re on the verge of disruption being normalised.

“And I hope the time will come when reporting on disruption gets normalised as well, because we have been around this block before, the stakes are always very high, and these are the moments where I am extremely grateful for a Prime Minister with a cool, strategic, calm and thoughtful approach to overcoming adversity.”

He said UK Prime Minister Keir Starmer had shown that “the bigger the shock, the cooler the head that he applies”.

In a message to businesses, he said: “There are opportunities in adversity as well as risks.

“The risks are very, very clear, but our country in adversity has benefited more than others, and I want to – now adversity is being normalised in a global economy – I want us to really look deeply into that and see where the opportunity is for British businesses, exporters, innovators, but also how we as a country can be more entrepreneurial, fleet of foot, bolder when it comes to seeing global opportunities amidst the uncertainty and upheaval.”

One land of opportunity for British businesses could be China, where Starmer is expected to visit early this year to boost trade links.

Asked if China was now a better trading partner than the US, Kyle said: “Every country that we have relationships with is unique, unique opportunities, as well as issues that need to be handled.

“In China, because of the scale of the opportunity and the nature of the issues that need handling, it is a more extreme example.

“That means we need to be careful, clear-sighted, but also not lose sight of the fact it is the second biggest economy in the world, it is the largest manufacturer in the world and its products will find their way into our economy.”

He said they were “not easy decisions or actions” but “I’m in this for the challenges, not just the easy bits”.

--BERNAMA-PA MEDIA/dpa