Donald Trump’s tariffs tsar has accused Britain of being a “compliant servant of communist China” at risk of having its “blood sucked” dry by Beijing.
Peter Navarro, the president’s trade adviser, said the Government must resist “string-laden gifts” from Beijing and avoid becoming a “dumping ground” for goods that China can no longer sell to the US.
In an intervention set to complicate trade negotiations between Britain and America, he told The Telegraph: “If the Chinese vampire can’t suck the American blood, it’s going to suck the UK blood and the EU blood.
“This is a very dangerous time for the world economies with respect to exposure to China.”
Like many in the Trump administration, Mr Navarro is suspicious of Chinese investment in British property and infrastructure, as well as its power in UK money markets.
He added: “And let’s face it, the UK has been an all too compliant servant of the Chinese Communist Party because of the string-laden gifts that China gives as a way of spreading its soft power.”
Rachel Reeves and David Lammy have both made high-profile visits to China in recent months as part of the Labour Government’s drive for what they call “pragmatic re-engagement” with Beijing.
The Chancellor of the Exchequer and the Foreign Secretary have stressed the need for a stable, balanced relationship with China, something they say could add £1 billion to the UK economy over five years.
There are also fears that the Government might prioritise a deal with the EU, which they hope to agree at a summit on May 19, in a move that could make an agreement with America harder to strike.
Mr Navarro insisted that talks between America and the UK are progressing and added: “We are moving in Trump time, which is to say as swiftly as possible.”
Mr Navarro was the driving force behind the US’s sweeping tariffs designed to rebalance global commerce, isolate China and bring manufacturing back to American soil.
Shipments of Chinese goods to the US are already plunging after the White House slapped tariffs as high as 145 per cent on some products, leaving Beijing scrambling to find other markets.
“As the US tries to get fairness from the biggest cheater, China, the UK and the EU have to be very vigilant about becoming dumping grounds for the products that China would otherwise sell to America,” he told The Telegraph.
Like many in the Trump administration, he fears the UK is particularly compromised.
Chinese retailer Shein is eyeing London for its controversial IPO and Rachel Reeves recently proclaimed the capital to be the “natural home” for China’s money.
“Beware of authoritarian mercantilist regimes bearing gifts,” Mr Navarro said.
The trade adviser holds a powerful position in Mr Trump’s White House. His big moment came on April 2 – dubbed “Liberation Day” – when the Trump administration slapped a baseline tariff of 10 per cent across trading partners, with increased levies on dozens more countries.
They were designed to cut America’s trade deficits and make companies think about moving factories back to US soil.
But, with markets roiling and the dollar under pressure, Mr Trump quickly announced a 90-day pause to allow trading nations to negotiate settlements.
First in line, say officials, are Asian nations that can help isolate China, such as India, South Korea and Japan.
The UK is close behind. Its trade is almost balanced with the US, making a deal easier. And JD Vance, the vice president, has talked up the cultural and social similarities that will smooth the path to an agreement.
However, sticky issues remain, and Mr Navarro has spelt out all the other barriers to trade that need reform, from currency manipulation and export subsidies to what he calls “discriminatory” product standards.
For Sir Keir Starmer’s government, that could come down to a question of food standards. The UK does not currently allow hormone-treated beef or chlorine-washed chicken into the country, ruling out those imports from the US.
Mr Navarro said he could not discuss US-UK talks, other than guidance on what to expect if London did not soften its stance on food standards.
“That’s a British political issue. It’s not for us to resolve that kind of issue,” he said.
“It’s just that it comes with a cost. If the UK, or any entity around the world, wants to impose significantly higher tariff and non-tariff barriers to protect different sectors of their economy, the United States will no longer tolerate that.”
The economist, 75, has been warning American politicians about the threat from China for two decades.
He was one of the few officials to survive Mr Trump’s entire first term.
Since then, he has cemented his credentials as the most loyal of loyalists.
Last year, he served a four-month prison term for refusing to give testimony to a congressional investigation into the Jan 6 attack on the US Capitol building.
He explained his survival at the heart of Trump world down to a simple philosophy.
“A singular focus on helping President Trump fulfil his vision,” he said.
“Never take the credit. Be willing to take the blame.”
In the current administration, he has tested his standing by needling Elon Musk, accusing the billionaire’s car company Tesla of relying on China for business.
Mr Musk, who describes himself as Mr Trump’s “first buddy”, dismissed Mr Navarro as “truly a moron” and compared him to a sack of bricks.
When presented with Mr Navarro’s comments, a Government spokesman told The Telegraph: “This Government will always take a clear-eyed and strategic approach to managing the UK’s relations with China.
“Our approach to international trade will remain to enhance the UK’s long term prosperity, while never compromising on economic and national security.”
Credit: Yahoo News