The end of Pax Americana holds opportunities for the UK

If you were a smart 22-year-old in Brisbane or Buenos Aires or Bangkok, with talent and drive and great earnings potential, where would you want to travel to live and work?

Maybe not Donald Trump's America, as the land of the free turns inward and MAGA policies from tariffs to attacks on universities and the law begin to bite. So, how about the UK?

Britain feels a little gloomy right now, gripped by a general sense that nothing works and that the economic and social problems facing the state are intractable. It's a mindset encapsulated by the country's Eeyore-like Prime Minister Keir Starmer, whose furrowed brow and serious mien convey a sense of joylessness and disappointment — despite being the man who finally brought his party into government after 14 long years in opposition.

That malaise was confirmed this week, as elections across English local government and a by-election to the House of Commons triggered by the violent conduct of a Labour MP saw restless voters desert the party in favor of Nigel Farage's upstart populist Reform. 

But look at the UK through another lens, and Trump's abandonment of Pax Americana presents exciting opportunities for Britain, which the Labour government should seize. America's isolationism creates space for the UK to parlay its numerous advantages — the English language, trusted institutions, belief in democratic norms and rules-based order — to influence events and offer an alternative source of global leadership.   

That would bring rewards, both materially and in cementing a self-confidence and sense of purpose that's been missing since Britain was (rightly) forced to give up its empire three-quarters of a century ago. 

As the world's elite consider where to bring their money and brains in the second quarter of the 21st century, why not London, one of the world's great capitals, with the culture, dining and real estate to rival New York and California. In and outside the city, Britain's universities are among the best in the world offering a social cachet perhaps matched only by the Ivy League and the Sorbonne. France has already taken a lead in offering academics "scientific asylum" from Trump's cuts to university programs; the UK should follow suit.

Meanwhile, British soft power has always punched above its weight on the sports field and the arts and now in tech. If Beijing does respond to Trump's tariffs by blocking Hollywood, perhaps Elstree and Ealing can step up.

It's true that the parlous state of the British economy, trapped as it is in a doom loop of Chancellor Rachel Reeves' making, may not be the best backdrop for a nation seeking world-power status. But things aren't exactly rosy for other big forces on the world stage either. 

Some things need to change if Labour is to take advantage of Trump's isolationist own goal. Perhaps most important is a rethink on trade, where Starmer's modus operandi since the start of the tariff war has been to play nice, declining to retaliate in the hopes of signing a swift trade deal with the US. With noises out of Washington suggesting Britain will have to wait in line for a deal, it's right that thoughts in London are finally turning back toward Europe; "reset" talks are due with the EU in a few weeks' time.

Europe does seem a more promising route to boosting the trade and growth the UK desperately needs, and the Starmer government should get over its qualms about appearing to row back on Brexit and push for a comprehensive deal. The EU — which would also thrive under enhanced, mutually beneficial trade arrangements with the UK — must in turn stop seeking to punish Britain for having had the audacity to quit the bloc. (France's attempts to tie a defense procurement deal to access to UK fishing waters is evidence of this.)

And while in the short term, the UK is particularly exposed to Chinese dumping of cheap products now unwelcome in the States, going forward London can take advantage of its strong relationships and old alliances, including with Commonwealth nations, middle-ranking powers such as Japan and South Korea, and new friends in the CTCPP trade group. A trade deal with India is said to be imminent, and Canada's newly elected Prime Minister Mark Carney has also spoken positively about such an arrangement for his America-leery nation.

Starmer's swift move to step up in the realm of defence after Trump cooled on Ukraine, by boosting spending and coordinating a "coalition of the willing," showed him at his best. He should lead the expansion of both a revived European defense industry and bilateral arrangements with other interested nations such as Japan. Where Trump appears unaware of the AUKUS nuclear sub pact between the UK, US and Australia, Starmer can take a lead in growing the group as part of Pillar Two.

Meanwhile, although realpolitik meant Starmer felt forced to limit aid spending to pay for his defense hike, he should reverse the cuts as soon as it becomes economically viable, stepping into the breaches in international aid left by America before they can be filled by China.

There are other relatively straightforward policy tweaks the Starmer government should make to ensure Britain can claim an enhanced global role in the absence of the US.

Dithering over an EU youth mobility scheme out of fear of taking an electoral hit on immigration seems self-defeating. British voters aren't worried about Spanish teenagers coming to work in trendy cafés in Hoxton for a year; they're fed up with the seeming inability of successive governments to stop asylum seekers arriving on small boats across the Channel. The two should not be confused in government thinking.

Likewise, foreign students should be removed from immigration metrics and universities freed to attract the smart international students who help pay their bills, so long as protections are in place to stop home-grown talent being priced out of higher education.  

Also as part of the EU reset, there should be a drive to eliminate the more pernicious post-Brexit glitches, such as the rules that make it almost impossible for touring bands to transport instruments and equipment, meaning that were the Beatles to play Hamburg today, Pete Best would struggle to bring his drum kit.

And the Treasury needs to keep an eye on the revised non-dom regime once the full implications are known, to ensure Britain remains an attractive place for entrepreneurs to live and start a business. Ministers should also get on board with London Mayor Sadiq Khan's bid for London to host the 2034 Olympics, which was a burst of energy back in 2012. 

Perhaps above all, Starmer needs to speak with more enthusiasm and ambition about Britain's potential to become a great power. Former Prime Minister Boris Johnson wasn't exactly a role model for anyone seeking to run a country effectively, but he was a gold medalist in his capacity to talk up this country.

Right now we need a bit of Boris-style boosterism to Make Britain Great — and global — Again.

Rosa Prince is a Bloomberg Opinion columnist covering UK politics and policy. She was formerly an editor and writer at Politico and the Daily Telegraph, and is the author of 'Comrade Corbyn' and 'Theresa May: The Enigmatic Prime Minister'.

Disclaimer: This article first appeared on Bloomberg, and is published by special syndication arrangement.