Norman Lamont, the former Conservative Chancellor, expressed significant concern over the possibility of a trade conflict igniting between Donald Trump's United States and the European Union. He foresees the risk of another economic downturn akin to the Great Depression of the 1930s, emphasizing the need for the UK to prioritize its trade relationships with the US over yielding to EU pressures.

Trump's administration plans to implement tariffs of up to 20 percent on various imports from multiple countries, including a steep 60 percent tariff on Chinese products, potentially igniting a retaliatory tariff response from the EU targeting American goods such as Kentucky bourbon and Harley-Davidson motorcycles. Despite these looming tariffs potentially costing the UK around £22 billion, Lord Lamont suggests that the UK could strategically refrain from engaging in tit-for-tat retaliatory measures.

He cautions against the dangers inherent in protectionist trade policies, highlighting that such approaches have historically led to severe economic consequences. Furthermore, Lord Lamont criticized Labour's inclination to adopt EU regulations for vital emerging industries, like artificial intelligence, noting that Europe significantly lags behind the US in these sectors. The UK government is currently advancing a bill that would enable alignment with EU rules, while Labour leader Sir Keir Starmer aims to foster improved relations with Brussels.

Tensions between Trump's administration and the EU have been exacerbated by remarks from Elon Musk, who has been vocal about his admiration for the far-right German AFD party. Meanwhile, the UK has not aligned itself with any European retaliation strategy against US tariffs, with Chancellor Rachel Reeves expressing hope that the bilateral UK-US relationship could facilitate favorable trade outcomes. She underscored the importance of global free trade beyond just the US-UK partnership.