President Joe Biden has described the US-UK relationship as “rock solid”, despite reported disagreements over Ukraine.
Mr Biden told Prime Minister Rishi Sunak he “couldn’t be meeting with a closer friend and greater ally” as the pair met this morning in Downing Street.
He joined the prime minister in the Downing Street garden at the start of their talks, after greeting him at the door to Number 10.
The prime minister said it was “great for us to carry on our conversation” following a string of meetings this year, including last month’s visit to Washington.
Mr Sunak said the pair would consider “how we strengthen our co-operation, joint economic security to the benefit of our citizens”.
Both leaders will also attend this week’s NATO summit in Lithuania.
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Image: Rishi Sunak welcomes Joe Biden to 10 Downing Street.
Mr Sunak said: “We stand as two of the firmest allies in that alliance and I know we’ll want to do everything we can to strengthen Euro-Atlantic security.”
It comes amid reports of disagreements regarding Ukraine’s ambitions for NATO membership and the US decision to provide Kyiv with cluster munitions, which the UK does not support.
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But Mr Biden insisted: “Our relationship is rock solid.”
Shortly after meeting with Mr Sunak in Downing Street, Mr Biden headed to Windsor Castle in Berkshire for tea and talks with the King.
Image: King Charles III and US President Joe Biden arrive to meet participants of the Climate Finance Mobilisation forum in the Green Drawing Room at Windsor Castle.
It was also confirmed there would be a “high-level” meeting between Number 10 and the White House in October to “drive progress” on the Atlantic Declaration – an agreement to bolster economic security in response to the growing threat of China.
Earlier, Downing Street played down reports of a UK-US split, saying Ukraine’s desire to join NATO would be discussed at the summit in Lithuania later this week.
While the UK supports Ukraine’s desire for a speedy accession to the military alliance, the US has struck a more cautious tone, with Mr Biden saying on Saturday that Ukraine was “not ready” for NATO membership currently.
Asked about the divergence of view, the Number 10 spokesman said: “Certainly, we do want to support Ukraine on the pathway to joining the alliance, the exact mechanisms for that are for discussion with Nato allies.”
He added that he had seen reports of a disagreement, but added: “I don’t believe that’s accurate.”
Image: U.S. President Joe Biden participates in a ceremonial arrival and inspection of the honour guard with the King at Windsor Castle
Another issue that has divided Downing Street and the White House is the latter’s decision to supply cluster munitions to Ukraine.
The UK is signed up to an international convention to ban the weapons, placing a duty on Mr Sunak to speak out against their use. The US is not signed to the agreement.
The spokesman said providing the weapons “was a difficult choice for the US” that had been “forced on them by Russia’s war of aggression”.
The two leaders “discussed the commitments that UK has under that convention, both not to produce or use cluster munitions and to discourage their use”.
Asked if Mr Sunak complied with that commitment to discourage the use of the weapons in his talks with Mr Biden, the spokesman said: “Yes, they discussed the requirements the prime minister is under because of this convention, and the UK is upholding that.”
Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.
The damage it will do is obvious: costs for companies will rise, hitting their earnings.
The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
All three of the US’s major markets opened to sharp losses on Thursday morning.
Image: The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
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Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”
Tanking stock markets, collapsing world orders, devastating trade wars; economists with their hair ablaze are scrambling to keep up.
But as we try to make sense of Donald Trumps’s tariff tsunami, economic theory only goes so far. In the end this surely is about something more primal.
Power.
Understanding that may be crucial to how the world responds.
Yes, economics helps explain the impact. The world’s economy has after all shifted on its axis, the way it’s been run for decades turned on its head.
Instead of driving world trade, America is creating a trade war. We will all feel the impact.
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PM will ‘fight’ for deal with US
Donald Trump says he is settling scores, righting wrongs. America has been raped, looted and pillaged by the world trading system.
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But don’t be distracted by the hyperbole – and if you think this is about economics alone, you may be missing the point.
Above all, tariffs give Donald Trump power. They strike fear into allies and enemies, from governments to corporations.
This is a president who runs his presidency like a medieval emperor or mafia don.
It is one reason why since his election we have seen what one statesman called a conga line of sycophants make their way to the White House, from world leaders to titans of industry.
The conga line will grow longer as they now redouble their efforts hoping to special treatment from Trump’s tariffs. Sir Keir Starmer among them.
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President Trump’s using similar tactics at home, deploying presidential power to extract concessions and deter dissent in corporate America, academia and the US media. Those who offer favours are spared punishment.
His critics say he seeks a form power for the executive or presidential branch of government that the founding fathers deliberately sought to prevent.
Whether or not that is true, the same playbook of divide and rule through intimidation can now be applied internationally. Thanks to tariffs
Each country will seek exceptions but on Trump’s terms. Those who retaliate may meet escalation.
This is the unforgiving calculus for governments including our own plotting their next moves.
The temptation will be to give Trump whatever he wants to spare their economies, but there is a jeopardy that compounds the longer this goes on.
Image: Could America’s traditional allies turn to China? Pic: AP
Malcolm Turnbull, the former Australian prime minister who coined the conga line comparison, put it this way: “Pretty much all the international leaders I have seen that have sucked up to Trump have been run over. The reality is if you suck up to bullies, whether it’s global affairs or in the playground, you just get more bullying.”
Trading partners may be able to mitigate the impact of these tariffs through negotiation, but that may only encourage this unorthodox president to demand ever more?
Ultimately the world will need a more reliable superpower than that.
In the hands of such a president, America cannot be counted on.
When it comes to security, stability and prosperity, allies will need to fend for themselves.
And they will need new friends. If Washington can’t be relied on, Beijing beckons.
America First will, more and more, mean America on its own.