President Donald Trump has threatened to rip up the US-UK trade deal, citing Britain's lack of support for his administration's conflict with Iran. The warning comes as Labour ministers reaffirmed their opposition to the war, with Prime Minister Keir Starmer declaring he will not change his position.
Speaking at PMQs, Starmer said: 'I’m not going to change my mind. I’m not going to yield. It is not in our national interest to join this war, and we will not do so.' His comments followed a threat from Trump to end the trade agreement if Labour wins the next election.
Chancellor Rachel Reeves, attending IMF meetings in Washington, told an American audience she did not understand the objectives of the Iran war. 'We’ve never been clear about what the goals of this conflict is,' she said, adding that diplomatic negotiations were ongoing before the conflict began.
Reeves expressed doubt that the war had made the world safer, noting damage to oil and gas infrastructure and the need to de-escalate. She also defended the UK's economic performance, saying: 'We beat the forecasts for the UK economy last year. I’m confident that we will beat them again.'
The row escalated after reports that Trump perceives insufficient British backing. The IMF has downgraded growth forecasts, particularly for the UK, but Reeves insisted the government would exceed expectations.
