Donald Trump threatened to punish Keir Starmer by downgrading the UK’s trade deal today – as his finance chief insisted a recession caused by the Iran War will not be as bad as a nuclear strike on London.
The US President vented fury at the PM for refusing to back his military campaign in his latest impromptu interview.
Speaking to Sky News, Mr Trump complained that the UK was ‘not there’ when he asked for help with the strikes on Tehran and helping reopen the Strait of Hormuz.
As well as hinting the trade agreement struck with Sir Keir is up for grabs, he also took aim at Labour’s immigration and Net Zero policies.
The Welsh Labour leader has urged the PM to retaliate by putting a key joint defence project on hold. Baroness Morgan suggested the ‘deep space radar’ planned for Pembrokeshire should be mothballed in light of Mr Trump’s ‘hostility towards the UK and verbal attacks on our nation’.
Meanwhile, Treasury Secretary Scott Bessent shrugged off a ‘small bit of economic pain’ after the IMF warned of a global downturn, with the UK the worst hit major country.
Brits are already feeling the pain from Middle East chaos at the pumps, with energy and food bills set to follow and even fears of rationing.
Speaking ahead of a meeting with Rachel Reeves in Washington later, Mr Bessent told the BBC he was more worried about the ‘long term’.
Arguing that Tehran had ballistic missiles that could hit the UK, he said: ‘I wonder what the hit to global GDP would be if a nuclear weapon hit London…
‘I am saying that I am less concerned about short-term forecasts, for long-term security.’
Sir Keir announced an ‘Economic Prosperity Deal’ with Mr Trump in May last year across a range of industries, including cars, planes and agriculture.
But some elements of the agreement have yet to be fully negotiated and implemented, while a UK-US technology partnership already appears to have been paused.
Asked about the state of the so-called Special Relationship in his latest interview, Mr swiped that it has ‘been better’ and that was ‘sad’.
‘We gave them a good trade deal. Better than I had to. Which can always be changed,’ he added ominously.
The President also renewed his criticism of Labour’s immigration and Net Zero policy.
He insisted ‘your country is being invaded by people from prisons, drug dealers, people from mental institutions’.
But Mr Trump said that the tensions would ‘not at all’ affect King Charles’s State Visit to the US later this month, suggesting he knew that the monarch was not involved in political decisions.
‘I’ve known him for a long time. He’s wonderful, wonderful person,’ the US President added.
Asked for his thoughts on the Special Relationship, Mr Trump initially replied: ‘With who?’
He said that while he liked the PM he had made a ‘tragic mistake in closing the North Sea oil’, as well as ‘a tragic mistake on immigration’.
Mr Trump said he ‘loves’ the UK and ‘would love to see it succeed’, but he hit out at ‘insane’ policies.
‘Your country is being invaded… by illegal immigrants from all over the world, including those from prisons, drug dealers, people from mental institutions,’ he added.
Sir Keir’s early efforts to woo Mr Trump have dramatically imploded, first due to US efforts to seize Greenland and then over the Iran War.
The PM initially refused to let American forces use UK bases to launch strikes, although he later relented to permit ‘defensive’ operations defending allies in the region from Iranian reprisals.
The premier also dismissed Mr Trump’s demands to send the Royal Navy to help reopen the Strait of Hormuz while the war was ongoing.
In a call with his Dutch counterpart overnight, Sir Keir said that Vladimir Putin was ‘benefiting from the events in the Gulf’.
In return, Mr Trump has branded Sir Keir ‘no Churchill’ and reputedly refers to him as a ‘loser’ in private.
Last month he re-posted a Saturday Night Live sketch mocking the PM as a ‘coward’ and ‘out of his depth’.
Yesterday Sir Keir condemned Mr Trump’s threats to ‘end’ Iranian civilisation, along with his plan to blockade the Strait.
In a statement to MPs, the PM said he would ‘never’ use the kind of words the US President did about destroying civilian power and water infrastructure because they were ‘wrong’.
He also confirmed that the UK will not be playing any part in Mr Trump’s latest move to stop ‘any and all ships’ going through the vital Strait – which carries around a fifth of the world’s oil and gas.
Sir Keir insisted Britain is ready to help restore freedom of navigation, but made clear that will ‘take time’ and can only happen ‘once the conflict ends’. He also demanded that Lebanon is included in any ceasefire, saying Israel must stop attacks.
Chancellor Rachel Reeves has gone further in her criticism of Mr Trump, saying she is ‘angry’ about his ‘folly’ of launching the war without any ‘clear exit plan’ or aims.
Ms Reeves is heading for Washington for IMF meetings today, where she will discuss the fallout from the Middle East chaos.
But she could face an awkward encounter with Mr Bessent, after he mounted a staunch defence of the Iran strikes.
‘The biggest risk you can take is one you don’t know you were taking,’ he said.
‘Now we know for a fact that, as the Iranians shot at Diego Garcia, they do have mid-range intercontinental ballistic missiles that could reach London, and we know that they want a nuclear programme.’
He added that US-Israeli action had removed the ‘tail risk’ of Iran launching nuclear strikes against Western states.
