Stephen Moore, a senior economic adviser to President-elect Donald Trump, has advocated for the UK to adopt the American “free enterprise” economic model over the European “socialist” approach to enhance prospects for a US-UK trade agreement. His comments come amidst the ongoing debate in the UK about aligning future trade relations with either the US or the EU—or potentially both.
- Economic Models: Moore emphasized that the UK needs to choose between the European model, which he describes as more socialist, and the U.S. model, which he claims offers more economic freedom.
- Trade Deal Prospects: According to Moore, the UK adopting a more U.S.-like economic system could increase the likelihood of a favorable trade deal with the Trump administration, suggesting that this alignment might “spur the Trump administration’s willingness” to enter into such an agreement.
- Agricultural Standards: Discussions on a UK-US trade deal have previously been stalled by disagreements over agricultural standards, including the contentious issues of chlorinated chicken and hormone-fed beef, which are significant concerns in the UK.
- Tariff Proposals: Trump has proposed a blanket tariff of at least 10% on all imports, with potential exemptions that could favor allies like Britain due to the “special relationship” between the two nations.
- Economic Implications: The possibility of higher U.S. tariffs has influenced economic forecasts, with Goldman Sachs recently reducing its growth prediction for the UK economy in 2025.
