Respected again

The United Kingdom on Tuesday announced Chinese telecommunications giant Huawei will build part of the country's next generation 5G mobile networks.

Why it matters: The United States along with numerous Conservative MPs have repeatedly warned the U.K. that Huawei is a national security risk, claiming that China could use its equipment for espionage. It's a sign the U.S. campaign against Huawei is faltering as allies open their markets.

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A senior Trump administration official told Axios' Jonathan Swan, "The United States is disappointed by the U.K.'s decision. There is no safe option for untrusted vendors to control any part of a 5G network."

  Axios

Also, trade deals are easy.

U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year.

But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos.

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Mnuchin raised the threat of car tariffs after Javid’s pledge to proceed with the digital services tax. If officials “just arbitrarily put taxes on our digital companies, we’ll consider arbitrarily putting taxes on car companies,” Mnuchin said.

British officials struck back.

“Let me be absolutely clear, UK tax policy is a matter for the UK chancellor, it’s not a matter for the U.S., it’s not a matter for the EU, it’s not a matter for anybody else,” Trade Minister Liz Truss said.

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The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners.

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The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say.

“Trump is not going to be doing Johnson any favors,” said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. “He’s not going to give him a trade deal without major concessions.”

Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports.

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Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain’s entrenched natural food culture to swallow.

The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson’s government.

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Reaching a meaningful deal will be “exceedingly difficult,” said Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for International Economics in Washington. “There are very deep-rooted issues on which the United States and the UK are diametrically opposed.”

  Reuters

How long will Johnson last if he gives in to Trump's demands?

...but hey, do what you want...you will anyway.