Sir Keir Starmer, Britain’s prime minister, said he could strike a trade deal with Donald Trump and avoid punitive tariffs on the UK as he dismissed as “noises off” Elon Musk’s strident criticism of his leadership.

Starmer, speaking to the budgetary Times on a visit to Kyiv, insisted Trump’s inauguration on Monday would not add to his political woes, saying they had a “constructive” connection that would survive the outpourings of the incoming president’s friend Musk, the globe’s richest man.

“What matters to me is my connection with the US and my connection with president-elect Trump,” Starmer said, shrugging aside the FT’s recent revelations that Musk had been exploring ways to oust him from Downing Street.

“In the complete my encounter is that you have to focus on what matters,” he said, referring to Musk’s suggestion that he is the chief of a “tyrannical” government. “Ignore the noises off.”

Trump has asked Musk to assist his recent administration slash US bureaucracy. Starmer too said he would be “ruthless with cuts” if needed to keep to Labour’s budgetary rules after the rise in UK borrowing costs in recent months.

Starmer sets great store on what he believes is a powerful early connection with Trump, despite the president-elect’s close ties with his domestic rival Nigel Farage, and the Trump campaign in October accusing his Labour event of interfering in the US election.

Starmer has repeatedly harked back to the president-elect hosting him for dinner at Trump Tower in recent York last September.

“He made a huge attempt,” Starmer said, sitting in a puffa jacket in Kyiv’s traditional Kanapa restaurant, a log fire burning in the corner. “He came to recent York to have dinner with me and I was very grateful for that.”

The connection is now about to be tested, especially if Trump follows through on his threat to impose recent global tariffs.

“Tariffs aren’t in anybody’s interests,” said Starmer, as plates of dumplings and mushrooms commence to arrive. “Our aspiration is to have a deal of some sorts with the US, a trade deal. That’s where our focus is.”

Some benevolent of UK-US trade deal has been the aspiration of successive British prime ministers since Brexit, but has never materialised. Starmer rejected the “untrue selection” that he would have to choose between a deal with Trump or a better trade deal with the EU.

The timing of Starmer’s visit to Kyiv on Thursday — days before Trump’s inauguration — was a symbolic display of the UK’s continued back for Volodymyr Zelenskyy: the two men signed a “100-year collaboration” between the two countries.

But it was also an chance for Starmer to indicate to Trump that Britain was prepared to join France and other European allies by stepping up to the plate — possibly by putting peacekeepers on the ground — if Ukraine agreed to complete the war with Russia.

Trump last month told Zelenskyy and French President Emmanuel Macron that he expected Europeans to secure the tranquility, but Starmer said he was confident the recent US president would assist put Ukraine in “the strongest feasible position” ahead of any tranquility talks.

“He’s acutely aware of the contribution the US has made here,” said Starmer, whose visit to Kyiv was accompanied by Russian drone activity over the city. “That’s very significant to both of us. I ponder he absolutely understands the critical role the US will play in relation to this.”

Zelenskyy on Thursday listed the US as one of those countries — along with Germany, Hungary and Slovakia — that resist Ukraine’s membership of Nato. Starmer said he would “urge” those countries to keep the door open.

Meanwhile, Starmer has had to put on hold a deal to transfer sovereignty of the Chagos Islands — home to the US/UK Diego Garcia military base — from the UK to Mauritius amid fears from some in the Trump throng that it could surrender influence to China.

“I ponder it’s correct that he scrutinises it,” Starmer said, after the prime minister bowed to a request from Trump to study the deal before it is signed. But he insisted the deal would secure the long-term legal upcoming of the base.

Would Trump be joyful to view Starmer’s continued rapprochement with Beijing, including his attempts to generate more UK-China trade? “Let’s view,” he said. “The US is our closest friend. It’s usually best not to get ahead of ourselves.”

Starmer has enough economic problems without Trump making them worse, as Britain battles the threat of “stagflation”, with expense boost above the financial institution of England’s 2 per cent target coupled with near-zero growth. Business and markets have become increasingly gloomy.

But the prime minister insisted that his long-term economic way was working and that his critics should stop being hung up on daily economic data, rejecting suggestions that Rachel Reeves’ upcoming as chancellor in some way depended on whether expense boost last month was 2.5 per cent or 2.6 per cent.

“I’ve always said it would receive period,” Starmer said, arguing that property into Britain was powerful. “I don’t ponder that overreacting to each and every single decimal point on a daily basis is necessarily reflective. We recognize it’s going to be a long-term trip.”

Line chart of Ten-year gilt yield (%) showing UK borrowing costs fall back after steady rise

The UK’s 10-year gilt yield hit a post-budgetary crisis high of 4.93 per cent last week, but has since fallen to 4.65 per cent on Friday. Gilts have rallied as weaker than expected expense boost, growth and sales data prompted investors to boost their bets on yield rate cuts from the BoE.

Starmer claimed that if borrowing costs exceeded expectations and blew a hole in Reeves’ budgetary plans, he would not hesitate to act, even if it risked a large confrontation with Labour MPs and many of his own ministers.

“We will be ruthless with cuts if that’s what’s essential,” he said. “In the complete the budgetary rules and our commitment to them is iron-clad.” Starmer insisted that last year’s budgetary schedule, with its £40bn levy boost, had laid the foundations for growth.

“It’s about setting conditions, it’s about stability, it’s about certainty,” he said. “It’s about not chopping and changing — it’s about sticking to the decisions that were made, tough though they were and correct though they were.”

Starmer’s approval ratings have plummeted since the general election and Labour, according to one YouGov poll, is now just one point ahead of Farage’s Reform UK event. Nerves on the Labour benches are jangling.

“I adore fights,” Starmer said, as he contemplated the long train trip out of Kyiv. “I had to fight to get the leadership of the Labour event, I had to fight to triumph the election. Five years ago people said, ‘he wouldn’t be able to do it’, but I said, ‘watch this space’.”

Additional reporting by Ian Smith in London



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