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The UK and the US have a “fair and balanced trading relationship”, Number 10 has said, after Donald Trump claimed the UK is “out of line”.

The American president suggested he is ready to impose tariffs on both the UK and the EU after he announced 25% tariffs on goods from Mexico and Canada, and 10% on China.

The FTSE 100 index of leading UK shares fell sharply on Monday morning after Mr Trump was asked if he will slap levies on Britain too.

He replied: “UK is out of line but I’m sure that one… I think that one can be worked out.”

Politics latest: Starmer meeting EU leaders in post-Brexit milestone

Reacting to that comment, a UK government spokesman said: “The US is an indispensable ally and one of our closest trading partners, and we have a fair and balanced trading relationship which benefits both sides of the Atlantic.

“We look forward to working closely with President Trump to continue to build on UK-US trading relations for our economy, businesses and the British people.”

More on Donald Trump

The US represents 18% (£300bn) of the UK’s trade and the countries are each other’s single largest investors with £1.2trn invested in each other’s economies.

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How Trump’s tariffs could impact US consumers and UK
Breaking economies could be first step for expansionist Trump

Canada and Mexico hit back with retaliatory tariffs

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Why PM’s EU meeting is a big deal

Mr Trump’s comments and the subsequent market fallout, also seen in Europe, are set to overshadow Sir Keir Starmer becoming the first UK leader to meet all 27 EU chiefs since Brexit.

UK ministers have previously suggested the country could avoid US tariffs as it does not have a trade deficit with Britain.

Despite his threat, Mr Trump had positive words for the UK when he said discussions with the prime minister have “been very nice”.

“We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well,” he said.

However, he said tariffs will “definitely” be placed on goods from the EU as he said America’s trade deficit with the bloc is “an atrocity” and “they take almost nothing and we take everything from them”.

Following Mr Trump revealing levies on Canada, Mexico and China, but before his UK and EU tariff comments, Sir Keir said: “It is early days. What I want to see is strong trading relations.

“In the discussions that I have had with President Trump, that is what we have centred on – a strong trading relationship.”

Canada, Mexico and China have all vowed to slap tariffs on US goods, sparking fears of a global trade war.

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UK, Australia, Germany, Italy and New Zealand condemn Israel’s plan for new operation in Gaza

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UK, Australia, Germany, Italy and New Zealand condemn Israel's plan for new operation in Gaza

The UK and four allies have criticised Israel’s decision to launch a new large-scale military operation in Gaza – warning it will “aggravate the catastrophic humanitarian situation” in the territory.

The foreign ministers of Britain, Australia, Germany, Italy and New Zealand said in a joint statement that the offensive will “endanger the lives of hostages” and “risk violating international humanitarian law”.

It comes a day after Israel’s security cabinet approved an operation to take military control of Gaza City – and concluded a full takeover of the enclave is required to end the conflict.

It marks another escalation in the war in Gaza, sparked by the Hamas attack of 7 October 2023.

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Can Netanyahu defeat Hamas ideology?

In their joint statement, the UK and its allies said they “strongly reject” the decision, adding: “It will endanger the lives of the hostages and further risk the mass displacement of civilians.

“The plans that the government of Israel has announced risk violating international humanitarian law. Any attempts at annexation or of settlement extension violate international law.”

The countries also called for a permanent ceasefire as “the worst-case scenario of famine is unfolding in Gaza”.

It comes as Sky News analysis has found that airdrops of aid are making little difference to Gaza’s hunger crisis, and pose serious risks to the population – with a father-of-two killed by a falling package.

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Revealed: The dangers of airdrops

Meanwhile, France, Canada, Qatar, the United Arab Emirates and the United Nations all criticised Israel’s plan for a full occupation of Gaza.

Israeli Prime Minister Benjamin Netanyahu “expressed his disappointment” with German Chancellor Friedrich Merz’s in phone call on Friday after Berlin decided it would stop selling arms to Israel.

In a post on X, the Israeli prime minister’s office added: “Instead of supporting Israel’s just war against Hamas, which carried out the most horrific attack against the Jewish people since the Holocaust, Germany is rewarding Hamas terrorism by embargoing arms to Israel.”

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Inside plane dropping aid over Gaza

US ambassador hits out at Starmer

Earlier on Friday, the US Ambassador to Israel, Mike Huckabee, criticised Sir Keir Starmer after he said Israel’s decision to “escalate its offensive” in Gaza is “wrong”.

Mr Huckabee wrote on X: “So Israel is expected to surrender to Hamas & feed them even though Israeli hostages are being starved? Did UK surrender to Nazis and drop food to them? Ever heard of Dresden, PM Starmer? That wasn’t food you dropped. If you had been PM then UK would be speaking German!”

Read more:
Analysis: Israel likely faces an impossible task
How life and colour has been stripped from Gaza

In another post around an hour later Mr Huckabee wrote: “How much food has Starmer and the UK sent to Gaza?

“@IsraeliPM has already sent 2 MILLION TONS into Gaza & none of it even getting to hostages.”

Sir Keir has pledged to recognise a Palestinian state in September unless the Israeli government meets a series of conditions towards ending the war in Gaza.

The UK and its allies criticised Israel as US President JD Vance and UK Foreign Secretary David Lammy met at Chevening House in Kent on Friday.

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Lammy-Vance bromance: Will it last?

Mr Vance described a “disagreement” about how the US and UK could achieve their “common objectives” in the Middle East, and said the Trump administration had “no plans to recognise a Palestinian state”.

He said: “I don’t know what it would mean to really recognise a Palestinian state given the lack of functional government there.”

Mr Vance added: “There’s a lot of common objectives here. There is some, I think, disagreement about how exactly to accomplish those common objectives, but look, it’s a tough situation.”

The UN Security Council will meet on Saturday to discuss the situation in the Middle East.

Ambassador Riyad Mansour, permanent observer of the State of Palestine to the United Nations, said earlier on Friday that a number of countries would be requesting a meeting of the UN Security Council on Israel’s plans.

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BlackRock launching a SOL ETF in first wave would be ‘messed up’ — Analyst

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<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

BlackRock hasn’t filed for a Solana ETF, but ETF analyst James Seyffart says they shouldn’t be allowed to jump in at the last minute after other issuers’ hard work.

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EthereumMax investors secure partial win in class-action lawsuit

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EthereumMax investors secure partial win in class-action lawsuit

EthereumMax investors secure partial win in class-action lawsuit

Four state-level lawsuits against three celebrities and individuals tied to the EMAX token may proceed after a California judge’s ruling.

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