Trump’s new world order: How the UK is reshaping its role in Europe

Following a volatile few weeks for the Western alliance, today Sir Keir Starmer will sit opposite Donald Trump in Washington DC. Sir Peter Westmacott, former British Ambassador to the US, has labelled the encounter as “one of the most consequential meetings of a British Prime Minister and President that we have had since the Second World War”.

Given the difficulty in predicting Trump’s next move, or social media post, it is clear a new world order is forming and the UK Government must adapt. His “America First” mantra is quickly becoming a reality.

Starmer has chosen to pre-empt the showdown with Trump – and his own Strategic Defence Review – by pledging to increase annual defence spending to 2.5% of GDP by 2027, equating to a £13.4bn increase. In addition, the Prime Minister said that the UK would set out a “clear ambition” to increase spending to 3% of GDP after the next general election, with Chancellor Rachel Reeves calling for European nations to “step up and do more on defence”. Whilst 2.5% is only half of what Trump has demanded, US Defence Secretary Pete Hegseth has already called it a “strong step from an enduring partner.”

This all comes as President Trump continues to push for a deal with Russia to end the Ukraine war, exacerbating fears among leaders across Europe that an “insecure” peace could leave the continent vulnerable. Starmer will be hosting various European leaders this weekend, providing him with an opportunity to encourage his European counterparts to follow in his steps and invest more in defence. The Prime Minister has made a defence and security pact a key component of his “reset” relations with the EU, and has previously called for “industrial collaboration”, regarded by many as a way to open up Europe to UK defence firms.

For those within the sector, there are clear opportunities to support a government that is keen to invest in and enhance the UK’s defence capabilities. Yes, that applies to the major defence primes, but increasingly it is non-traditional defence companies, established innovators and start-ups alike, that are seeing the greatest scope for growth. Equally, SMEs, the backbone of the UK economy and fundamental to supply chains, have a vital role to play.

As Trump continues to reshape the geopolitical landscape, Starmer will continue to juggle international diplomacy with domestic concerns. With a flatlining economy, could this sudden renewed focus on defence and security finally provide that much needed spark that the Labour Government’s much-vaunted growth agenda needs?

At Luther, we help clients reach, inform and engage with policymakers and stakeholders across the defence sector.  Please contact us at publicaffairs@luther.co.uk for more information.