Trump expected to make decision on Lord Mandelson as ambassador this week

Donald Trump is expected to make a decision over Lord Peter Mandelson as the UK’s ambassador to the US this week, State Department sources have said.

The Independent has been told the president is still “likely to reject” the credentials of the former business secretary, despite hopes being raised after Mr Trump said he likes Sir Keir Starmer “a lot”.

Concerns over Lord Mandelson’s links to China, his connection with the late Jeffrey Epstein, and his previous role as an EU commissioner have all been raised as reasons why Mr Trump could reject Lord Mandelson in an unprecedented move between the two countries.

He may, however, allow the former minister to take up his post but with conditions and “on a short leash”, sources added.

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The revelation comes after Sir Keir and President Trump finally spoke after almost a week since the inauguration. The readout did not mention Lord Mandelson but the president did offer his condolences to the prime minister for the loss of his brother last month. Sir Keir congratulated Trump on his inauguration and involvement in getting a peace deal between Israel and Gaza.

A Downing Street spokesperson said: “They also discussed trade and the economy, with the Prime Minister setting out how we are deregulating to boost growth.

“The two leaders stressed the importance of the close and warm ties between the UK and the US, and the President spoke of his respect and affection for the Royal Family.

“They agreed to meet soon and looked forward to further discussions then.”

However, the potential standoff over who should be the UK ambassador to the US remains. It appears the White House is not keen to have a politician fill the role of UK ambassador to the US, with a briefing to The Sun on Sunday suggesting former foreign secretary David Miliband would also not be a good fit.

And despite his warm words about Sir Keir on Air Force One overnight and the subsequent conversation, sources connected to the administration have insisted the move would also be a deliberate show of strength to the prime minister.

“I think he’ll reject them just to elbow Starmer and use it as an excuse to punch Labour,” one well-placed source claimed.

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Antagonism was said to have arisen from Labour’s decision to send 100 activists to the US to help Kamala Harris beat Mr Trump.

This happened shortly after Mr Trump had hosted Sir Keir and foreign secretary David Lammy for a private dinner, and was seen as a slap in the face for the Republican.

The nomination of Lord Mandelson has further inflamed matters after Sir Keir’s chief of staff Morgan McSweeney and national security adviser Jonathan Powell were both told on a trip to Mr Trump’s Florida home Mar-a-Lago that they did not want the former minister nicknamed “the Prince of Darkness”.

There are also strains over the Labour government’s plans to hand over the Chagos Islands to Mauritius and concerns over free speech in the UK raised by Mr Trump’s ally, X boss Elon Musk.

Alarmingly, many in Mr Trump’s inner circle were last week talking about looking for “regime change” in the UK.

But the prime minister will be also pleased with Mr Trump’s overnight comments prior to their conversation where he suggested he may make a trip to the UK for his first foreign visit.

Speaking to the BBC on Air Force One, Mr Trump said the pair would have a phone call “over the next 24 hours”.

“I get along with him well. I like him a lot,” the president said of Sir Keir.

“He’s liberal, which is a bit different from me, but I think he’s a very good person and I think he’s done a very good job thus far.

“He’s represented his country in terms of philosophy. I may not agree with his philosophy, but I have a very good relationship with him.”

The UK government has previously dismissed the questions over Lord Mandelson’s status as “speculation”.