Why Keir Starmer is outdoing the EU when it comes to dealing with Donald Trump
After all the posturing, threats of counter tariffs, Ms von der Leyen had signed a deal which was roundly criticised by a long line of leaders including German chancellor Friedrich Merz, who said the agreement would "substantially damage" his nation's finances, and French prime minister Francois Bayrou, who described it as tantamount to "submission".
Hungary's Viktor Orban, an outspoken critic of the EU leadership, said Trump "ate von der Leyen for breakfast".
But there was one question which diplomats and government heads were asking all over Europe: 'How did Keir Starmer get a better deal than us?'
Not only is the EU still paying 15 per cent tariffs, but it now has agreed to spend billions purchasing energy resources from the US. This compared to the 10 per cent tariffs for the UK.
'Featherweight' Ursula von der Leyen
A seasoned diplomat of an EU member state told The Independent that there was 'anger' about what had happened.
The fact that the UK 'appears to be rewarded for Brexit' also really stung.
But what was more worrying was that the EU supposed collective muscle had failed to produce the goods.
Much of the blame has fallen on Ms von der Leyen herself and she is now being referred to as 'the featherweight'. 'She was just not strong enough to take on Trump,' said the diplomat.
'People are just remembering that she was a weak defence minister in the German government, now she is weak as a negotiator.'
An insider at Trump's Turnberry golf resort described how the US president was 'in no hurry' to conclude the talks on Saturday.
'He wanted to spend more time talking to paying guests and getting pictures with them,' The Independent was told.
'He was incredibly gracious to everyone there including the staff.'
Respect for Starmer
But it was a different story with Sir Keir.
The insider noted: 'He spoke very warmly of Starmer. He genuinely likes him. I think he respects Starmer for standing up for himself and being straightforward and honest. Trump does not like a complete sycophant.
'In Keir he sees a decent man which the public in the UK don't seem to see at all.'
This seemed to not only touch on trade issues but also the problems in the Middle East.
When Emmanuel Macron declared France would recognise a Palestinian state he was savaged by Trump's secretary of state Marco Rubio.
When Canadian PM Mark Carney did the same Trump himself said it would threaten their trade deal.
But when Starmer did it, Trump effectively greenlit the decision and said he was fine with it.
The personal relationship between Starmer and Trump was vital in getting that done. But there was more.
One Washington insider close to the White House told The Independent: 'Trump does not want any trouble with the UK until after he had a successful state visit in September.'
They predicted: 'The relationship with Starmer will eventually fall apart over censorship – online harms bill, digital services taxes, illegal migration, Palestine, and Labour's capitulation to Islamism.'
However, that might not be the case. The key to UK diplomacy with the US is King Charles III and the Prince of Wales, with the US president's reverence of the royal family keeping the show on the road.
One source said: 'The King and Trump are actually very close.'
Meanwhile he 'has spoken a lot' to Prince William, who he met at the reopening of Notre Dame cathedral in Paris.
Mandelson works the room
Added to that though has been the work of Lord Mandelson as the UK's ambassador in Washington DC.
Having almost had his credentials rejected over links to China, Mandelson has been 'working hard to meet everyone and build relations'.
'He is one of the big reasons the UK did well out of the trade deal,' a source said.
He is also been central to ensuring that the state visit in September by Trump is 'a big success'.
One DC insider said: 'Currently Lord Mandelson is probably the most effective ambassador in Washington at the moment. He seems to know everybody.'
Sir Keir will be hoping that this will all prove to be enough to maintain the preferential treatment he seems to be enjoying as a world leader with the US at the moment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
19 minutes ago
- Reuters
Indian equity benchmarks to open flat as investors assess Trump's tariff threat
Aug 5 (Reuters) - India's equity benchmarks are set to open little changed on Tuesday after U.S. President Donald Trump reiterated his threat of harsh tariffs on goods from India over its Russian oil purchases. Gift Nifty futures were trading at 24,766 points as of 7:59 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open around its previous close of 24,722.75. Trump on Monday threatened to raise tariffs on goods from India over its Russian oil purchases, while New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening the trade rift between the two countries. Analysts said the ongoing trade rift has hit the market sentiment, and expect benchmarks to remain in a range-bound trade until there is clarity over U.S. tariffs. The uncertainty has partly driven sustained foreign outflows from India. Foreign investors have sold Indian shares for 11 straight sessions till Monday, per provisional data. The Reserve Bank of India's policy decision on Wednesday will also be in focus. The central bank is expected to hold interest rates steady, but the odds of another cut have risen as the U.S. tariffs are adding to pressure on growth. ** IndusInd Bank ( opens new tab appoints veteran banker Rajiv Anand as chief executive officer for a three-year term starting August 25 ** China's Ant Group ( opens new tab to sell its entire stake in Indian payments firm Paytm ( opens new tab in block deals that could total 38 billion rupees ($433.72 million), according to a term sheet seen by Reuters on Monday ** Drugmaker Aurobindo Pharma ( opens new tab reports a lower first-quarter profit on Monday, as expenses grew faster than revenue - stung by weak prices in the key U.S. market
Reuters
19 minutes ago
- Reuters
Rupee at risk of lifetime low after Trump ups tariff threat on India
MUMBAI, August 5 (Reuters) - The Indian rupee may drop past 88 to the U.S. dollar to an all-time low on Tuesday after U.S. President Donald Trump threatened steeper tariffs on Indian goods, worsening fragile sentiment and stoking concerns of more foreign outflows. The 1-month non-deliverable forward indicated the rupee will open in the 88.00 to 88.04 range versus the U.S. dollar, down from 87.6550 on Monday. The rupee's previous record low was 87.95, touched in February. Trump again threatened to substantially raise tariffs on Indian goods, citing India's continued purchases and resale of Russian oil. India's foreign ministry responded, saying it will take all necessary steps to protect its national interests and economic security. "Whether these barrage of comments are mainly negotiating tactics against India to partly prod for changes in the Russia-Ukraine war remains to be seen," MUFG Bank said in a note. Trump had already imposed higher-than-expected 25% tariffs on Indian imports last week, while U.S. officials continue to highlight multiple hurdles that are delaying a trade deal with India. Sentiment on the rupee has been fragile due to the hefty tariffs on Indian goods. On Monday, the pressure intensified, with the rupee falling despite the dollar weakening broadly. On Monday, the rupee failed to hold on to an intraday recovery to near 87.20. "Today was already shaping up to be a difficult session (for the rupee), and Trump's latest tariff threat only amplified the pressure,' a senior trader at a private bank said. "I'd fully expect the Reserve Bank of India to step in — they won't want to let the rupee depreciate unchecked, especially in the face of U.S. rhetoric." He warned that overseas outflows from Indian equities may gather pace in response to rising trade tensions with the U.S. KEY INDICATORS: ** One-month non-deliverable rupee forward at 88.14; onshore one-month forward premium at 12 paise ** Dollar index up at 98.82 ** Brent crude futures down 0.1% at $68.7 per barrel ** Ten-year U.S. note yield at 4.2% ** As per NSDL data, foreign investors sold a net $165.5mln worth of Indian shares on Aug. 1 ** NSDL data shows foreign investors bought a net $223.7mln worth of Indian bonds on Aug. 1
Reuters
37 minutes ago
- Reuters
Iveco coordinated closely with Italian government on Tata, Leonardo deals, says source
MILAN, Aug 4 (Reuters) - Iveco ( opens new tab coordinated closely with the Italian government on its deals to sell its truck business to Tata Motors and its defence unit to Leonardo, a source with knowledge of the matter said on Monday. India's Tata Motors ( opens new tab last week agreed to buy Iveco in a deal valuing it at 3.8 billion euros, while the Italian truck and bus maker separately agreed to sell its IDV defence business to Leonardo ( opens new tab, giving it an enterprise value of 1.7 billion euros. The government's preliminary review of the deals, before they were officially announced, may indicate Prime Minister Giorgia Meloni's administration will not set heavy conditions on the deals. Iveco declined to comment on Monday. The Italian government was not immediately available for comment. Presenting the deals last week, Iveco CEO Olof Persson said Tata Motors had committed to maintaining Iveco's "industrial footprint and employee communities", as well as its corporate identity. Iveco's headquarters will remain in Turin, Italy, after the acquisition is completed, the two groups also said last week. Iveco last year made 74% of its revenues in Europe and 11% in South America, whereas Tata currently has no European or South American truck or bus making operations. That absence of overlap in those regions will enable the Indian manufacturer to scale up the Iveco business, the source said, including through investments needed to expand the smallest European truckmaker and to meet industry safety and environmental regulations. The source said Tata Motors increased the total headcount in two previous large M&A deals it made, the 2004 acquisition of Daewoo Commercial Vehicle in South Korea and the 2008 purchase of Jaguar Land Rover in the United Kingdom. The Italian government is expected to put the two sales under scrutiny as part of so-called golden power legislation, which allows it to intervene on deals involving companies deemed of national interest. When the two deals were announced last Wednesday, officials from Meloni's administration said the government supported "quality foreign investment" but would closely follow the deals to ensure the protection of jobs, strategic resources and the wider production chain. Iveco employs around 36,000 people, including 14,000 in Italy. Exor, the holding company of Italy's Agnelli family, currently owns a 27.1% controlling stake in Iveco, with 43.1% of voting rights.
