Donald Trump has signaled he could reverse the trade agreement with Britain, weaponizing last year's economic pact as tensions flare over American military operations in the Middle East. The president told Sky News the deal cutting tariffs on cars, aluminum, and steel was generous on his part and remains subject to change.
The threat marks an escalation in Trump's public frustration with the UK government, which he says failed to support American interests during the Iran conflict. "It's the relationship where when we asked them for help, they were not there when we needed them," Trump said in a phone interview, describing the special relationship as being in a "sad state."
British officials have been increasingly vocal about the economic damage caused by the US military strikes on Iran. Chancellor Rachel Reeves has expressed anger at the decision to launch operations without clear objectives, warning that the fallout could trigger global recession and hit UK families harder than other major economies. Prime Minister Keir Starmer went further, saying he was "fed up" with American actions driving up energy bills.
Trump used the interview to double down on his criticism of British policy. He claimed that closing the North Sea oil fields and immigration policies had saddled the UK with the world's highest energy prices and weakened the nation. "I like Starmer but I think he's made a tragic mistake," Trump said, arguing the policies are "destroying your country."
A spokesperson for Starmer pushed back against Trump's characterization of the relationship, insisting the special partnership operates across multiple dimensions including trade, diplomacy, national security, and culture. The statement suggested the disagreement over Iran was not representative of broader ties.
The conflict has exposed a growing divide in priorities. Trump suggested a permanent ceasefire with Tehran could materialize before King Charles's state visit in April, claiming Iran has been badly weakened. Meanwhile, Reeves was in Washington for International Monetary Fund meetings where she is scheduled to meet US Treasury Secretary Scott Bessent, who said "a small bit of economic pain" from the Iran war was justified to prevent nuclear proliferation.
Starmer has increasingly tilted toward deeper European engagement, arguing that the economic and security benefits of closer ties to the EU are too significant to ignore in an era of global instability and American unpredictability. The comments underscore a strategic pivot that mirrors growing frustration with Washington.
The IMF has already downgraded Britain's economic growth forecast due to the Gulf crisis and warned of potential worldwide recession. The Bank of England governor, Andrew Bailey, offered some reassurance, noting the UK banking system is resilient following reforms after the 2007-09 financial crisis.
Author James Rodriguez: "Trump is using trade as a cudgel, and Britain's diplomacy appears to have no answer when the US president decides partnership is conditional on geopolitical alignment."
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