Britain should align with US on trade rather than pursue EU, says Trump aide

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LONDON (Reuters) - A senior economic adviser to U.S. President-elect Donald Trump has said Britain should align itself with the United States on trade rather than pursue closer ties with the European Union.

Speaking to BBC radio, Stephen Moore said the EU had a “socialist model” and suggested the U.S. would be less interested in a free trade deal with Britain if the government put its economic relations with the EU ahead of those with the U.S.

“The UK is kind of caught in the middle of these two forms of economic model and I believe that Britain would be better off moving towards more of the American model of economic freedom. And if that were the case, I think it would spur the Trump administration’s willingness to do the free trade agreement with the UK," said Moore.

Bank of England Governor Andrew Bailey on Thursday urged Britain’s new Labour government to rebuild ties with the EU.

While the government has ruled out rejoining the EU's single market or customs union, Prime Minister Keir Starmer has said he wants to improve trade ties and diplomatic relations with the bloc.

Finance minister Rachel Reeves, speaking just before Bailey at the same event, said Britain needed to "reset" its relationship with the EU, and that she also looked forward to working closely with Trump to strengthen trade ties.

While Bailey did not refer directly to the U.S. election in his speech, policymakers around the world are still digesting Trump's victory and the prospect of double-digit tariffs on goods imported by the United States.

(Reporting by James Davey; Editing by Kevin Liffey)