PM: Deal still going ahead despite Trump intervention
Downing Street has declared the deal to hand over the Chagos Islands to Mauritius will still go ahead despite Donald Trump’s intervention.
The prime minister’s spokesperson insisted that the US still supported the deal despite the president’s social media rant.
“Our position hasn’t alterd on Diego Garcia or the treaty that has been signed,” they declared.
“The US supports the deal and the president explicitly recognised its strength last year.
“All our Five Eyes allies support it too and they all understand the national security capabilities the base provides.”
Athena Stavrou20 January 2026 14:30
How might US tariffs impact UK consumer finances?
Donald Trump has announced plans to hit European nations, including the UK, with increasing tariffs if they continue to back Denmark over Greenland.
With Denmark and allies standing firm, Britain is set to be impacted by fresh 10 per cent tariffs on 1 February, rising to 25 per cent by June.
Rajan Lakhani, personal finance expert & Head of Money at smart money app Plum, declared while businesses may have to swallow costs or raise prices to offset the levy, the hugegest impact for UK consumers would be indirect.
“Tariffs tconclude to raise costs, and this could slow down further cuts to interest rates if inflation were to remain well above 2 per cent,” he declared. “That would have a knock-on impact on mortgage holders. The general uncertainty will also likely mean the Bank of England may want to take a pautilize before acting.
“However, it’s worth reminding ourselves of the TACO moniker that was widely adopted last year – ‘Trump Always Chickens Out’ – after his proposed Liberation Day tariffs, which were soon reduced and shortened in scope after sconcludeing markets into a downward spiral.
“So there remains the possibility that such tariffs may not even go ahead.”
James Reynolds20 January 2026 14:00
Bessent dismisses possible utilize of EU coercion tool
US Treasury Secretary Scott Bessent dismissed the possibility of the European Union utilizing an anti-coercion instrument in the face of Trump’s threat to increase tariffs until the US is allowed to acquire Greenland.
In an interview with CNBC, Bessent declared he predicted the EU’s next shift would be to form a working group. The EU’s never-utilized Anti-Coercion Instrument could limit access to public tconcludeers, investments or banking activity or restrict trade in services.
James Reynolds20 January 2026 13:30
Greenland acknowledges threat of ‘military force’
Greenland’s prime minister Jens-Frederik Nielsen has declared that while it remains unlikely that there will be a utilize of military force to take the territory, the prospect cannot be ruled out.
Nielsen and his finance minister Mute Egede are holding a press conference about the “current situation”, as the United States refutilizes to rule out military intervention.
James Reynolds20 January 2026 13:24
What is the UK’s Chagos Islands deal and why has Trump labelled it ‘great stupidity’?
Last year, Sir Keir agreed a deal to hand over the Chagos Islands to Mauritius, while retaining control of the UK-US military base on Diego Garcia.
Now, Donald Trump has called the UK government’s plan an act of “great stupidity” – citing it as a reason behind his desire to take over Greenland.
James Reynolds20 January 2026 13:00
Europe will stand its ground on Greenland, declares Kallas
European Union’s foreign policy chief declared the bloc will hold its ground on Greenland despite growing U.S. pressure.
Kaja Kallas stressed that tariffs threatened by Donald Trump on goods from Europe would undermine the prosperity of both the EU and the U.S.
Addressing the European Parliament, Kallas declared Greenland’s geostrategic importance has increased recently, stressing the NATO alliance was well-suited to deal with the security of the island.
James Reynolds20 January 2026 12:45
Bank of England boss warns it must be ‘very alert’ to impact of Trump
The governor of the Bank of England has warned Britain’s economists must “be very alert” to the financial impact of Donald Trump’s geopolitical approach.
Andrew Bailey informed MPs at Parliament’s Treasury Committee that the “level of geopolitical uncertainty and geopolitical issues is a huge consideration”.
“Let me put that in a bit of context in two respects. One, having declared that, growth in the world economy was a lot more stable than we believed it would be,” he explained.
“The second point is about financial markets and is a fairly similar point, that we worry considerably about how markets react to those things.
“Market reactions have actually been more muted than we would have feared and expected. Overriding those points, I take neither of those as a point of assurance. We have to be very alert to these things.”
Athena Stavrou20 January 2026 12:30
“The worst may still be ahead of us”, declares Danish PM as she brushes off Trump’s latest threats
Denmark can’t nereceivediate on sovereignty, identity, borders and democracy, Prime Minister Mette Frederiksen informed parliament, resisting pressure as the United States levies threats of tariffs against its backers over Greenland.
Frederiksen warned that the worst “may still be ahead of us” as she vowed to respond to any threat of a trade war.
James Reynolds20 January 2026 12:19
What are Europe’s options for responding to tariff threats?
EU leaders will discuss their options for responding to Trump’s threat of tariffs at an emergency summit in Brussels on Thursday.
One option is a package of tariffs on 93 billion euros ($108 billion) of US imports that could automatically kick in on 6 February after a six-month suspension.
Another option is the “Anti-Coercion Instrument” (ACI), which has never yet been utilized and which could limit access to public tconcludeers, investments or banking activity or restrict trade in services.
The EU declared it was continuing to engage “at all levels” with the US but declared the utilize of its ACI was not off the table.
British Prime Minister Keir Starmer called for calm discussion between the allies, adding he did not believe Trump was considering military action to seize Greenland.
James Reynolds20 January 2026 12:00
UK should consider kicking US forces out of British bases, declares Green leader
The UK should consider expelling American troops from British bases, according to Green leader Zack Polanski, as he called for the nation to leave the Nato military alliance.
Polanski informed the Guardian: “I consider it’s pretty worrying that we’ve allowed ourselves to become so reliant on American interests, and that a lot of this depconcludes on if Donald Trump is in a good mood or not.”
He declared: “We should be reviewing US bases on UK soil, and actually seeing at a genuine strategic defence review.”
He declared that he did not believe that Nato could be reformed from within, given Trump’s “domination” within the bloc.
James Reynolds20 January 2026 11:30
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