Britain Fears Israel Sanctions Could Trigger a Trade War With Trump

The British government is preparing to impose significant sanctions on Israel following progress on a construction plan in the E1 area, but concern is growing within the Labour Party over the economic and diplomatic price Britain could pay in its relationship with the United States. 

According to a report published today (Thursday) in the British Times, Labour members of Parliament warned Prime Minister Andy Burnham that measures against Israel could prompt a response from the Trump administration and even develop into a trade war between London and Washington.

At the center of the dispute is the possibility of imposing trade bans in response to the plan to build 1,200 housing units in Judea and Samaria. Some members of Parliament fear that such a move would not go unanswered by the White House, especially given the U.S. administration's response to similar measures recently advanced by other European countries.

Last month, for example, the U.S. administration criticized legislation advanced by Ireland. Washington warned at the time of "unintended consequences" for hundreds of businesses and called the move "unhelpful." The Irish case is now serving as a backdrop to concerns in London that the United States could respond with economic measures against Britain as well.

Adding to this is the clash that developed between Trump and Spain. Madrid banned imports of products from Judea and Samaria last year, and Trump later threatened to impose a full trade embargo on the country. The American threat came as part of a broader dispute with Spain, after Madrid decided not to allow the United States to use its military bases for operations in Iran.

Despite the concerns, Burnham is preparing, according to the Times, to announce a significant sanctions package in response to the E1 expansion plan. At the same time, he is under pressure from within his party to go even further: at least 140 Labour members of Parliament support escalating the measures and are demanding that Britain adopt a sanctions package more far-reaching than that taken by any other European country.

Among the demands raised by the members of Parliament is also an expansion of the trade bans. Rather than limiting the move to goods connected only to Judea and Samaria, they are seeking to apply the restrictions to additional sectors as well.