Looming Threat of Trump's Return Haunting British Establishment?
The UK-US state visit, which took place recently, was marked by a series of significant announcements, most notably the unveiling of the "Tech Prosperity Deal." This ambitious agreement, worth £250bn, is set to revolutionise various sectors, including technology, artificial intelligence, data centers, and nuclear energy.
The deal, announced by Labour leader Keir Starmer, mimicking President Trump's style, is expected to create thousands of jobs in the UK. However, the details and potential trade-offs of this deal are yet to be fully understood.
The state visit, characterised by a lack of public interaction, saw the public kept at a distance beyond security fences. The state banquet and a business-oriented dinner at a castle were the highlights of the visit. A business round table was held at the PM's country residence Chequers the day after the state banquet.
The US Commerce Secretary, Howard Lutnick, expressed his view that the UK could more easily deliver the new tech deal with Britain realising its Brexit potential. Lutnick also implied that the UK's Digital Services Tax, which brings in about £900m a year, is an issue of contention. The US tech industry considers this tax an "aberration in the tax code" and wants it scrapped.
In a surprising turn of events, King Charles made a political intervention during the banquet by turning to Trump and emphasising the allies' commitment to the defence of Ukraine. This moment was striking given Europe's concerns about Trump's stance on Ukraine.
The personal rapport between Prime Minister Boris Johnson and President Trump seems to allow for disagreement on geopolitical issues without fear of retaliation, as demonstrated by the UK's plans to recognise a Palestinian state and Trump's opposition to it.
The success of Starmer's approach to President Trump remains to be seen in the weeks and months ahead. The opposition to and support for President Trump during the state visit were notably small in number, creating a different atmosphere compared to his last state visit in 2019.
The British government views the state visit as a significant victory, but it also represents a risk, as critics warn of potential authoritarian tendencies that could negatively impact the British establishment in the future. The state visit is seen as an attempt by one country to woo another with the best it has to offer, as with Trump, "you're in, or you're out."
The commercial result of the meeting between Starmer and Trump was the signing of the "Tech Prosperity Deal." This deal, considered the largest investment package in British history, is expected to create 15,000 jobs in the UK. Notable commitments include Microsoft investing 25 billion euros in UK supercomputing and AI projects.
The US Treasury Secretary, Scott Bessant, attended the state banquet, adding an air of officialdom to the visit. Donald Trump's chief of staff, Susie Wiles, expressed satisfaction with the state visit, stating it was "just great" and "the whole thing has been great." The British side believes the state visit was a "big win" for Prime Minister Johnson.
As we move forward, the focus will be on the implementation of the "Tech Prosperity Deal" and its impact on the UK's economy and tech sector. The deal aims to continue the special relationship between the UK and the US into the next chapter of the 21st century.
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