Trump's tough policies push UK, EU to significantly expand trade and defense
New agreement grants UK access to $170B EU defense loan program as Europe responds to President Donald Trump's defense policies
{{#rendered}} {{/rendered}}Nearly a decade after the United Kingdom (U.K.) voted to leave the European Union (EU) under Brexit and amid shifting relations with the U.S. under President Donald Trump, Britain and the EU significantly bolstered their trade and defense partnership on Monday.
In what is the largest deal the bloc and the U.K. have agreed to since the controversial Brexit vote in 2016, the two economic powerhouses agreed to increase defense ties and slash red tape, making it not only easier for U.K. food and visitors to access the continent, but also granting fishing rights to EU vessels off of Britian’s coastline.
The agreements have been described as a "reset" and championed by U.K. Prime Minister Kier Starmer, who opposed Brexit, and EU leader, Commission President Ursula von der Leyen, who said, "At a time of global instability, and when our continent faces the greatest threat it has for generations, we in Europe stick together."
{{#rendered}} {{/rendered}}TRUMP IS COMMITTED TO 10% BASELINE TARIFF, WHITE HOUSE SAYS, DESPITE UK TRADE DEAL ANNOUNCEMENT
Britain's Prime Minister Keir Starmer, center, stands for a photo with European Commission President Ursula von der Leyen and European Council President Antonio Costa ahead of a United Kingdom and European Union summit at Lancaster House in London on Monday, May 19, 2025. (Henry Nicholls/Pool Photo via AP)
While the U.K. talked down the Trump administration’s 25% "reciprocal" tariffs earlier this month to limit the fees to 10% on up to 100,000 car exports to the U.S. – the U.K.’s chief export item to the States – the EU has reached no such agreement with Washington and faces 20% tariffs on all U.S. exports come July.
While EU and U.S. officials are still working to find an agreement, reports on Monday suggested that even the existing 10% tariff slapped on the EU over the last 50 days has left a negative mark and the bloc anticipates a drop in growth for 2025.
{{#rendered}} {{/rendered}}However, it is not only Trump’s tariffs that have pushed Western allies to strengthen relations following his re-entry into the White House.
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A Fox News graphic that depicts how countries have responded to President Donald Trump's tariffs. (Fox News / MANDEL NGAN/AFP via Getty Images)
Trump’s hardline push for increased NATO defense spending, along with his sharp break from the Biden administration on Ukraine aid, left European allies scrambling after his inauguration.
{{#rendered}} {{/rendered}}While the Trump administration has seemingly improved ties with Ukrainian President Volodymyr Zelenskyy, Trump’s refusal to outright condemn Russian President Vladimir Putin has resulted in stronger ties between top nations like the U.K., France and Germany, as well as within the EU bloc.
At the heart of the new defense agreement is the U.K.’s ability to access an EU defense loan program worth roughly $170 billion, expanding joint defense procurement opportunities.
From left to right, Polish Prime Minister Donald Tusk, Ukrainian President Volodymyr Zelenskyy, U.K. Prime Minister Keir Starmer, French President Emmanuel Macron and German Chancellor Friedrich Merz arrive to put flowers on memorial of fallen Ukrainian soldiers at Independence Square in Kyiv, Ukraine, on Saturday, May 10, 2025. Ukrainian first lady Olena Zelenska is seen behind, second right. (AP Photo/Evgeniy Maloletka)
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{{#rendered}} {{/rendered}}"Britain is back on the world stage," Starmer said. "This deal is a win-win."
Far-right conservatives in the UK like Nigel Farage, an ardent proponent of BREXIT, have condemned the recently announced deal.
The White House did not immediately respond to Fox News Digital's questions.
{{#rendered}} {{/rendered}}Reuters contributed to this report.