Danger of trade war with Donald Trump's America means UK needs EU more than ever

Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur)Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur)
Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur) | AFP via Getty Images
The new US President’s plans to impose tariffs on imported goods means a trade war is a realistic short-term possibility

“Hell is empty, and all the devils are here,” wrote William Shakespeare. This phrase came to mind as I watched coverage of Donald Trump’s second inauguration. His coterie of new American oligarchs will now hold unprecedented and unbridled power over American money and global influence.

This is a group of individuals wedded to an agenda that I’m certain will not make the world more stable. It will not build bridges across national borders, nor will it enrich the lives of ordinary Americans in any meaningful way.

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One such oligarch, Elon Musk, has spent the early days of 2025 lighting political fires here in the UK, stoking racial division and revealing a profound lack of understanding about British politics, our way of life, or our values.

So here we are. For the next four years, we will bear witness to political outrage and divisive policy, spending decisions driven by corporate greed and vital appointments in US public life made on partisan lines. Above all, we will see the triumph of conspiracy theory over science, empirical evidence and reason. It’s not going to be pretty.

Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur)Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur)
Donald Trump's closeness to American oligarchs, like Elon Musk, means they will hold unprecedented power over American money (Picture: Kena Betancur) | AFP via Getty Images

UK must look east

But I’m not giving up on America. The special relationship which exists between our two countries is old enough and strong enough to withstand the final term of a narcissistic convicted felon. The United States still has the capacity to be a force for good in our world. Yet we have to face the reality that, for the time being at least, we can’t be entirely certain that they will always have our back.

Talk of tariffs and climate change denial, of capitulation to Vladimir Putin and of slowly dismantling aspects of the Western alliance that has guaranteed our security for 75 years must act as a wake-up call for the Labour government. Now is the time to fix our broken relationship with Europe.

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If Trump is determined to extricate America from Nato, then we should look East, and strengthen security ties with our neighbours on the Continent. That starts with steadfast military support for Ukraine.

Alex Cole-Hamilton campaigned for Kamala Harris in the US ahead of the recent US presidential electionAlex Cole-Hamilton campaigned for Kamala Harris in the US ahead of the recent US presidential election
Alex Cole-Hamilton campaigned for Kamala Harris in the US ahead of the recent US presidential election | Picture courtesy of Alex Cole-Hamilton

The national interest

Furthermore, we need to protect Scottish interests when it comes to trade. Tariffs could cause real damage to our economy and have a particular impact on our whisky industry. If some kind of trade war with America is now a realistic short-term possibility, then we must as a matter of urgency negotiate a brand-new customs union deal with the EU to cut red tape and boost British businesses.

Labour may be wary of addressing the obvious problems with our relationship with Europe, but a two-thirds majority of those who put Starmer in power agree that the UK should build closer “economic and security ties with Europe” given Trump’s incoming presidency. Likewise nearly one in two Brits express their worry that Nigel Farage’s close ties with the US President risk undermining the UK’s national interests.

Voters are worried about how Trump will impact our national security – not to mention their pockets. Keir Starmer must listen to them and accelerate talks with Europe. The Liberal Democrats will continue to push urgently for a stronger UK-EU relationship, including a new customs union deal. That's how to strengthen Britain’s hand when it comes to dealing with Trump.

Alex Cole-Hamilton MSP is Scottish Liberal Democrat leader

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