Short term wins aren't always victories

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The precise details of the ‘trade deal’ agreed between Trump and Sir Starmer are less than entirely clear at present, but it appears that the UK has conceded rather more than it has gained, in order to get back to a position which is not quite as bad as the current one, but not quite as good as the one which pertained before Trump started his tariff campaign. I was rather taken by this description from Gaby Hinsliff in the Guardian:

“This has been less a trade deal between allies – a process of give and take that in the long run hopefully leaves both sides better off – than a hostage negotiation. Pay Trump what he feels he’s due, and you get your economy back in roughly the state it was before, though missing a few fingers and probably traumatised.”

The bigger question is how long it will last. With someone as fickle as Trump in charge, today’s best deal ever can easily be redefined tomorrow as the work of a complete loser, and it will all be the fault of the groundwork that the Biden administration carried out. Sir Starmer is in a bind, even if he doesn’t realise it yet. The more he proclaims it as a good deal for the UK, the more His Orangeness will think that he didn’t demand enough – and reneging on deals that he himself negotiated and signed is always an option, as Canada and Mexico have already discovered. Bullies who think that they can get more will always come back and try for it. Assuming that your negotiating partner is honest and trustworthy simply doesn’t work with someone like Trump – and there are plenty of victims willing to attest to that.

Is it better to have done a deal than not done it? In principle, yes, of course. Being slightly less worse off is obviously an improvement – for an individual participant. Whether allowing and facilitating a strategy of divide and conquer is better than forming alliances with a bloc (the EU), which has rather more clout, to deal with the orange menace collectively is a much harder question to answer. The impact of the deal, when we know the detail (which will have some good things and some bad things in it), will be relatively small in economic terms. The bigger significance is whether it encourages or discourages Trump’s approach of bullying his way around the world. I suspect the former is more likely than the latter.