British prime minister Burnham has been warned that pressing ahead with sanctions on Israeli settlements could trigger a trade war with US president Trump. Labor MPs say a UK plan to impose a trade ban over Israel’s construction of 1,200 settler home

2026-08-27

British prime minister Burnham has been warned that pressing ahead with sanctions on Israeli settlements could trigger a trade war with US president Trump. Labor MPs say a UK plan to impose a trade ban over Israel’s construction of 1,200 settler homes in the West Bank could invite White House retaliation. The White House last month criticized Ireland for similar legislation, warning of “unintended consequences” for hundreds of firms and calling the move “unhelpful”; Trump also threatened a full trade embargo on Spain after Madrid banned imports from Israeli settlements last year. US-Spain tensions have widened over Spain’s refusal to let the US use its military bases for actions against Iran. Burnham is preparing to announce “tough” sanctions targeting the E1 settlement expansion; at least 140 Labor MPs back measures they want tougher than other European countries and covering services as well as goods.