In a heated exchange at a Democratic fundraiser in Chicago last night, President Joe Biden branded his predecessor Donald Trump a 'loser' and a 'threat to democracy'. The remarks, met with cheers from the crowd, signal a sharpening of rhetoric as the US election cycle heats up. For British diplomats, tasked with navigating the uncharted waters of a potential second Trump term, the fallout is being monitored with an urgency that reflects the high stakes for transatlantic trade and defence.
Biden's comments come amid a flurry of campaign stops, with the president seeking to galvanise support among progressive donors. But it is the language itself that has caught the attention of Whitehall insiders. 'Loser' is a term that cuts deep in American politics, a word Trump himself has wielded against opponents. The symmetry is not lost on those who remember the former president's refusal to concede defeat in 2020.
For British officials, the prospect of Trump returning to the Oval Office is a nightmare scenario. His 'America First' policies would likely target UK exports, particularly in agriculture and pharmaceuticals. The recent signing of the US-UK trade deal, hailed as a victory by Boris Johnson, could be thrown into doubt. Labour unions, already wary of the deal's impact on British workers, are watching closely.
Meanwhile, the cost of living crisis here at home shows no signs of easing. A new report from the Resolution Foundation warns that inflation will erode household incomes by 6% this year. Workers in the North and Midlands, where wages are already lower, will be hit hardest. The RMT union has announced fresh strike ballots on the railway networks, a sign that industrial action is spreading beyond the public sector.
Back in Chicago, the Democratic donor class were writing cheques. But for working families in Burnley or Barnsley, the transatlantic squabble might feel like a distant luxury. Bread prices are up 10% since January. Heating bills have doubled. The real economy is not just about who occupies the White House. It is about whether a single mother can afford to put food on the table.
Yet the US election matters deeply to Britain's economic prospects. A Trump victory would embolden hard-right factions within the Conservative Party, pushing them towards a more aggressive deregulatory agenda. A Biden re-election offers stability but also pressure on issues like climate change and corporate tax avoidance. Either way, the Treasury is preparing contingency plans.
The mood among British diplomats is one of cautious optimism mixed with dread. They have seen first-hand the chaos Trump can cause. The 'special relationship' is built on trust, and trust is a fragile thing. As Biden and Trump trade insults, the real losers could be those who depend on a stable world order. That includes the man on the Liverpool docks and the woman in the Sheffield hospice.
This is not just about politics. It is about the price of a pint and the security of a pension. The UK cannot afford to be a bystander in this drama. We must engage, but with eyes wide open. The next few months will test the resilience of our democracy and our economy. Let us hope the outcome is not a loser for us all.
