Labour Faces Pressure to Rethink Brexit Strategy Amid Trade War and Shifting Public Opinion

Labour's major financial backers are urging Sir Keir Starmer to adopt a more ambitious approach to his Brexit strategy, particularly in response to the international trade war initiated by Donald Trump's tariffs. Trade unions, which provide a significant portion of Labour's campaign funding and were previously divided on Brexit, are now leading the call for closer ties with the European Union.

The Trades Union Congress (TUC), supported by a survey, is joining forces with business groups to encourage Sir Keir to reconsider his Brexit stance. This push comes as President Trump has imposed tariffs on the UK, impacting various sectors and potentially jeopardizing jobs. The TUC emphasizes the need for a new approach that respects the referendum result while fostering a closer trading relationship with the EU.

A recent survey revealed that a majority of voters now favor closer ties with the EU. Even supporters of pro-Brexit parties and Conservative voters are increasingly inclined towards stronger EU relations. The polling also indicates that a significant number of voters who switched from Conservative to Labour in the recent election, as well as those leaning towards Reform, support a closer UK-EU relationship.

Labour MPs are also advocating for a more ambitious Brexit reset, with some expressing concerns about the party's manifesto commitments. Business groups are similarly calling for a closer relationship with the EU, emphasizing the importance of adapting to the changing global landscape and strengthening ties with the UK's primary trading partner.

However, some figures, including former Tory business secretary Sir Jacob Rees-Mogg, dispute the conclusions regarding the impact of Trump's tariffs. They maintain that the UK is better off outside the EU, citing advantages such as reduced exposure to tariffs and the ability to avoid EU regulations. Despite these opposing views, there is a growing push for Sir Keir to reconsider his Brexit red lines and prioritize a stronger economic relationship with the EU.