Donald Trump will impose “surgical” tariffs when he enters office, his former director of communications has warned, as concern grows over an imminent trade war with the United States.
Anthony Scaramucci said he will impose the levies in a targeted way on any “industries that we need to protect”.
It comes just days after Sir Keir Starmer hit out at the “dangers” of tariffs, putting the prime minister on a collision course with the incoming US president.
Mr Scaramucci told Times Radio: “It’s going to be surgical, and it’s going to be done to protect the industries that we need to protect.
“So as an example, if China teams up with their steel industry, meaning the government is now fortifying and subsidising the steel industry, and they can dump steel into the American market below the market price to crush out their American competitors, we can’t allow that.”
He also said any talk of Mr Trump running for a third term is “to rile up the liberals” after former White House chief strategist Steve Bannon suggested the president-elect’s second term wouldn’t be his last.
“The constitution says that he can’t. He’s doing that to rile up the liberals. He’s doing that to scare people”, Mr Scaramucci said.
Speaking at the Commons Liason Committee earlier this week, Sir Keir said he was “not a fan” of tariffs as he was grilled by MPs about how he plans to deal with the next occupant of the White House.
“Am I alive to the danger of tariffs? Yes of course. I’m against tariffs, but I’m not going to speculate as to what the incoming president might do”, the prime minister said.
Experts have warned of a looming trade war after Mr Trump himself said: “Tariff is my favourite word.”
In the run-up to his election, the Republican promised to implement 10 to 20 per cent tariffs on all goods coming into the country – a figure that rises to 60 per cent for those from China.
While chancellor Rachel Reeves has promised the UK will make “strong representations” to Mr Trump over tariffs which could hit Britain’s economy, the Labour government’s relationship with the incoming US administration has been increasingly turbulent.
Earlier this week, a row broke out between the government and Trump’s team after Lord Peter Mandelson was selected to be the UK’s new ambassador to the US. One insider described it as a “horrible, arrogant” choice, while his campaign coordinator publicly called the Labour peer a “moron”.
The choice of the former EU commissioner and Blair-era minister, who previously attacked Mr Trump as “little short of a white nationalist and racist”, prompted a warning that Britain will be “locked out of the most important discussions” with the president-elect’s team because of a lack of trust.
As the UK government attempts to repair the damaged relationship with the president-elect and his team, the King and Prince of Wales are expected to be “front and centre” of a charm offensive on Mr Trump, The Independent revealed this week.