UK's PM reportedly warned of potential US trade war over Israel sanctions
British Prime Minister Andy Burnham attends a meeting of the so-called Coalition of the Willing group, amid Russia's attack on Ukraine, in Kyiv, Ukraine, Aug. 24, 2026. (Reuters Photo)


Andy Burnham has been warned by several Labour MPs of a potential trade war with U.S. President Donald Trump over the British premier's plans to impose tougher sanctions on illegal Israeli settlements in the occupied West Bank, a report said Wednesday.

The MPs cautioned Burnham that the move could trigger retaliatory measures from the White House and risk a trade dispute with Washington, The Times said.

One Labour MP told the newspapers that the U.K.’s trade and diplomatic relationship with the U.S. is already "fragile enough" in its current state.

"We shouldn't be naive enough to believe we could sanction Israel and not face any economic and political consequences," the MP said.

Another MP pointed to the significant risk of U.S. tariffs being imposed on countries that ban goods from Israeli settlements.

"There is a very big risk of Trump and the Israelis taking retaliatory measures," another official warned.

The official also called on the government to consider such risks carefully "before going ahead with gestures that might make their backbenchers and some voters feel better, but would not improve the plight of the Palestinians anyway.

Burnham’s plans to impose tougher sanctions on illegal Israeli settlements in the occupied West Bank have deepened divisions within the governing Labour Party.

More than 140 Labour lawmakers, roughly a third of the parliamentary party, have signed a letter calling on the government to ban trade with Israeli settlements, according to The Times.

Labour Friends of Israel, however, warned that distinguishing settlement products from other Israeli goods would be "practically impossible" and that the measure could become a de facto boycott of Israel.

Burnham wants Britain to adopt a "far more robust" stance than his predecessor, Keir Starmer, in response to Israel's plans to construct around 1,200 additional settler homes, the newspaper reported, citing a senior government source.

Measures under consideration reportedly include a ban on trade with Israeli settlements and sanctions against individuals involved in settlement activity.