Starmer's balancing act as world on brink of trade war

As Sir Keir Starmer met in Brussels for informal talks, US President Donald Trump was making menacing noises about tariffs which could have a disastrous impact on world trade.

Fresh from hitting China, Canada and Mexico with punitive import taxes, the US president warned that the EU was next in his sights. Sounding a mildly softer tone, he added that the UK was also 'out of line', although he indicated that a deal could probably be done.

A French diplomat has reportedly suggested that Sir Keir is being pushed towards the European fold because of growing pressure from the Trump administration, and there are plenty of EU supporters on this side of the Channel who see an increasingly uncertain world as a reason for Britain to align more closely with the EU.

We think Sir Keir would be wise to tread carefully. 

It is clear that President Trump is playing hardball has he seeks more favourable terms from his trading partners. The fact that he appears to be taking a slightly softer line with the UK presents a possible opportunity for the UK to act as a bridge between the two adversaries. But if Sir Keir throws his lot in with the EU, Britain is likely to be treated the same as the EU. On the other hand, if he allies to closely with the US in a potential trade war, he cannot be to surprised if he gets the cold shoulder in Brussels.

The Prime Minister is walking a tightrope, and if he gets it right, the rewards could be huge - but one mis-step could be disastrous.

The world is locked in a high-stakes game of poker. The Prime Minister would be wise not to show his hand too early.