The US has signalled that trade talks with Britain are on hold, after Keir Starmer was accused of “letting down” Washington over plans to transfer the Chagos Islands to Mauritius.
Scott Bessent warned of “glitches” in the UK-US trade relationship, saying the dispute had been triggered by the British government’s decision to hand the Chagos Islands to Mauritius. He added that no further trade talks between the two countries were currently scheduled.
Speaking at the World Economic Forum in Davos, Mr Bessent said: “President Trump has made it clear that we will not outsource our national security or our hemispheric security to any other countries.
“Our partner in the UK is letting us down with the base on Diego Garcia, which we’ve shared together for many, many years, and they want to turn it over to Mauritius.”
On Tuesday, Donald Trump criticised Britain’s plan as an “act of stupidity”. The US operates a major military base on Diego Garcia.
While the UK and US announced a trade agreement last May, key details remain unresolved. A separate “Tech Prosperity Deal” was suspended by Washington in December, citing frustration over Britain’s failure to reduce trade barriers.
