President Trump's tariff war on Canada and Mexico is poised to have repercussions for Britain. From rising UK borrowing costs to increased prices and a slowdown in global trade, the UK may find it difficult to escape the fallout.

A key challenge will be whether Britain feels compelled to take sides, particularly if the EU becomes a target. Given that the EU remains Britain’s largest trading partner and Labour seeks closer ties with Brussels, this could become a pressing issue.

However, siding with the EU carries more risks than rewards. The bloc is unlikely to offer significant benefits in return, while a Trump-led White House—eager to strike deals with post-Brexit Britain—may respond negatively.

Regardless of Labour’s stance, the economic consequences could drive up borrowing costs, derail Rachel Reeves’s spending plans, and hinder investment in essential public services.

To navigate this challenge effectively, Britain must adopt a strategic approach. It should maintain strong trade relations with Brussels without aligning too closely and, at the same time, solidify its partnership with Washington.

Britain has yet to fully capitalize on its post-Brexit opportunities, and rekindling ties with the EU could further weaken its position. Instead, the UK should focus on maximizing its advantages and working with a pro-UK Trump administration to shield itself from the worst effects of the tariff war.

One step Labour could take is scrapping the controversial Chagos Islands agreement, which threatens Western alliances—a deal the Trump team strongly opposes.

The question remains: Will Labour prioritize national interests over ideology? Only time will tell.