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Donald Trump ramps up tariffs on European goods and slashes foreign aid, British Prime Minister Keir Starmer arrived at the White House on Monday, seeking to secure economic and security assurances during a time of growing global uncertainty.
The meeting between the two leaders comes at a critical time, with Trump’s decision to impose a sweeping 25% tariff on European imports sending shockwaves through business sectors in Belgium and beyond. Meanwhile, Trump has reaffirmed plans to hit Canada and Mexico with similar trade penalties starting March 4 if they fail to curb drug trafficking.
For European exporters, Trump’s latest trade measures could prove costly. Belgian businesses, particularly in the pharmaceutical and chemical industries, face potential losses of up to €12 billion, according to the employers’ organization Voka.
By Ruvarashe Gora
“It’s above all the pharmaceutical and chemical sectors that will see their market reduced,” said Voka managing director Hans Maertens. “The products they want to export will become 25% more expensive, and that means U.S. companies will no longer want to buy them.”
A survey of 750 Flemish businesses found that two-thirds have a negative economic outlook, with many reconsidering investments due to geopolitical uncertainty. Energy-intensive industries, such as steel and chemicals, are especially vulnerable, with some firms weighing relocation outside Belgium.
In addition to the escalating trade war, the Trump administration is eliminating more than 90% of its foreign aid contracts, slashing tens of billions of dollars in global assistance. The White House argues that the cuts align with its “America First” policies, but critics warn of destabilizing consequences for developing nations.
At the same time, Trump has vowed to impose steep tariffs on Canada and Mexico unless they take stronger action against drug trafficking. “If they don’t step up, the tariffs will go into effect as scheduled, “said Trump, despite conflicting signals from within his administration.
Adding to the global uncertainty, U.S. and Russian diplomats met in Istanbul this week to resolve disputes over embassy operations, marking a rare diplomatic engagement between the two countries. However, no breakthrough was immediately reported.
Amid these tensions, Starmer’s visit signals Britain’s attempt to maintain stability in its relationship with the U.S. While the UK is not directly affected by the latest tariffs, Starmer is expected to push for a trade deal that shields British industries from future restrictions and ensures continued defense cooperation.
“The UK remains committed to its NATO obligations, and we look forward to strengthening our economic partnership with the U.S.,” Starmer said ahead of the talks.
As Trump’s aggressive trade policies reshape global markets and strain diplomatic ties, Starmer’s visit underscores the urgent need for strategic alliances in an increasingly volatile economic landscape.
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