DONALD Trump has dealt Labour a major blow by pushing a trade deal with the UK down his priority list, reports say.
The US president is said to have put a deal with the UK Government into either the second or third phase of a new negotiation structure, with South Korea among the nations listed in the first priority lane.
A source told The Guardian: “The US has now decided to negotiate its trade deals in three phases.
“The [UK] Government has been told it will not be in phase one – though that leaves the door open to be in either phase two or three.”
Asked about the reports on Wednesday, Foreign Secretary David Lammy told MPs: "I read the Guardian. They're not always right."
The news would be seen as a serious blow in Downing Street. Chancellor Rachel Reeves flew to the US last week with the aim of pushing Trump to sign a trade deal which reports said was all but ready.
Prime Minister Keir Starmer also offered Trump an unprecedented second state visit to the UK in a bid to extract concessions, alongside having UK Government officials lobby for his Turnberry golf course to host the Open, efforts which seem to have fallen flat.
Now, there are fears among UK Government officials that a deal with the EU – which is expected to be agreed at a summit on May 19 – may make a deal with the US more difficult.
Speaking from Washington last week, Reeves told the BBC that an EU deal was “arguably even more important” – although Trump’s administration has frequently criticised the bloc.
Reeves said last week that there is “a deal to be done” with Washington, despite suggestions from senior US officials that Trump regards the 10% tariff as a “baseline” he is unlikely to go below.
She also ruled out several concessions the US is thought to be looking for as the price of a deal.
These include reductions in food standards rules that limit imports of American agricultural goods and changes to online safety legislation that some US politicians believe limit freedom of speech.
On Tuesday, MPs were told that the Online Safety Act is “not up for negotiation” and will not be part of any trade deal discussions with the United States.
There have been reports that, in the wake of lobbying from US-based tech giants, Trump would push the UK to water down online safety laws in exchange for a trade deal or relief from tariffs.
Under the laws, those found in breach of the rules could face fines of up to £18 million, or up to 10% of global turnover – whichever is greater – and, in the most serious cases, sites could be blocked from the UK.
A UK Government spokesperson said: "The US is an indispensable ally and negotiations on an economic prosperity deal that strengthens our existing trading relationship continue.
“We’ve been clear that a trade war is not in anyone’s interests and we will continue to take a calm and steady approach to talks.”
