Sir John Redwood is a former MP for Wokingham and a former Secretary of State for Wales.
Many Conservatives are pleased Donald Trump won, whilst others have been more influenced by the Democrat lines about his character, conduct and some of his past statements.
It is time for all UK Conservatives to grasp the opportunities President Trump’s arrival in the White House offers the UK whatever their personal feelings about the man. All should accept the choices of American voters and be positive about many of the things he wishes to do. If he succeeds in slimming government, speeding growth, lowering taxes and controlling migration he provides us with a boost to winning next time. That would help show people how conservative approaches work better than Labour or Democrat socialism.
The UK’s ability to develop a good relationship with the USA under Mr Trump is greatly aided by the President’s own views on foreign policy and who to trust. He likes the UK. He is a serious investor here. He loved his State visit to be the guest of the late Queen. He offered negotiations for a Free Trade Agreement which the UK establishment wrongly thought premature when we were exiting the EU. He is pleased the UK does hit the NATO target for spending and is a willing military partner.
He is most hostile to China, the US’s main competitor in trade, foreign influence and much else. He is sceptical of the EU as they are critical of him and are wedded to net zero and heavy regulation which he rejects. UK Conservatives should be pressing this government to warm up their relations with a man they have in the past condemned and opposed, whilst we build our own links with the new Washington establishment as friends, allies and sometimes advisers.
So what can the UK benefit from?
Take the approach to taxes. Donald Trump wishes to introduce a new lower corporation tax rate of 15 per cent for certain types of industry.
Kemi Badenoch is right to avoid early policy promises. We should work towards a Manifesto proposal of lower taxes to attract industry to the UK, to boost investment in the UK and to increase revenues. In the past when we did cut Corporation tax, receipts went up as more business came here, more business was transacted by companies already here, and as profits improved from the stimulus. President Trump also will make further reductions to personal income tax, including the popular pledge to remove tax on tips.
Conservatives here too need to return to winning ways of being able to lower personal tax rates on earning and saving. We need to encourage both, not penalise hard workers and savers more.
There is Donald Trump on net zero.
UK Conservatives are not going to say net zero is a scam, but we can develop our growing critique of the range of policies rolled out in its name. Many of them cut UK CO² only to increase world CO² because we substitute imports for home production. Labour’s policy of keeping our own gas in the ground is particularly foolish. We import liquified gas instead which takes large amounts of energy to liquefy, refrigerate, ship and then turn back to gas, trebling the amount of CO² produced by burning it.
The UK’s current net zero policies are the worst kind of self harm.
Expensive energy means energy intensive plants here close so we import instead. We lose the jobs,the investment and the tax revenue. All steel blast furnaces are being closed so we rely on Chinese or German ones. Our Grangemouth refinery will shut so we import refined products. Glass, paper, tiles, ceramics and much else has to be contracted out to factories abroad.
Conservatives need to speak up for cheaper energy and for industry at home.
Donald Trump will make the Mexican border far more secure. He may adopt a Rwanda scheme to have somewhere to send those he intends to deport. He succeeded last time in having much lower levels of illegal migration and would demonstrate the ability to enforce the law which the UK and Europe has failed to do.
President Trump also believes in imposing tariffs.
If these are imposed on a country like China whilst submitting evidence of unfair trading practices like subsidies, infringement of intellectual property, devalued currency or impediments on imports then these are legal responses under World Trade rules.
They might well level the playing field a bit in a necessary way. If he uses them to seek to force changes of policy in another this may make sense. Mexico might be more willing to enforce border law if he threatens tariffs for not helping. If he just wants to impose tariffs to collect more revenue in place of taxes he will discover much of the burden will fall on US consumers and they will be inflationary. As he swept to victory with the economy and inflation as the main issues he should see the dangers to his Administration from taking them too far.
The UK should seek the Trade Deal President Trump has been keen on. We should not threaten retaliatory tariffs with public posturing alongside the EU but have private conversations stressing the mutual US/UK advantage in free trade.
If Elon Musk and his other helpers can cut back the bureaucracy, save money and not damage services many will be making a pilgrimage to Washington to find out how.
So cheer up Conservatives. President Biden was always on the side of the EU and never wanted a trade deal with us.
A change of President presents us with opportunities.