Chancellor Rachel Reeves addresses concerns over new tariffs as Donald Trump is re-elected, emphasising the importance of UK-US trade ties.
- Reeves reassures the commitment to “free and open trade” amidst Trump’s tariff threats.
- UK prepares to negotiate with the US as it prioritises domestic manufacturing.
- Reeves highlights UK’s significant £311bn trading partnership with the US.
- The Chancellor maintains optimism for mutual economic benefits despite potential trade challenges.
In the wake of Donald Trump’s re-election, Chancellor Rachel Reeves has taken steps to alleviate concerns over potential tariffs on UK goods. During her first public comments following the election, Reeves reiterated the UK’s commitment to maintaining “free and open trade” with the United States. Her remarks come amidst Trump’s plans to impose significant tariffs, reaching up to 60% on Chinese imports and between 10-20% on other international goods.
Reeves recognised the shift in the US towards prioritising domestic manufacturing and economic sovereignty. According to her, these measures should be seen as a pragmatic approach rather than mere protectionism. She stated that the questions of where products are manufactured, who is responsible for their production, and the entities that own them hold increasing relevance for global economic policy makers today.
Addressing the Treasury Select Committee, Reeves underscored the critical nature of the UK’s relationship with the US, which stands as the UK’s largest trading partner, with bilateral trade amounting to £311 billion annually. She articulated that this relationship is essential, extending beyond commerce into sectors of security and defence. The UK remains opposed to new tariffs, yet is poised to engage with the US in sectors where interests align.
Further, Reeves accentuated the role of the UK in influencing the global economic agenda, advocating that free and open trade policies benefit both nations involved. She emphasised that “free trade access is a key driver of societal wealth,” asserting that the UK is far from a bystander in global trade dynamics. Reeves conveyed her optimism in the UK’s capacity to influence and shape the global trading framework through continued strategic efforts.
These statements arise as Trump’s focus sharpens on reducing America’s trade deficit with China and strengthening domestic manufacturing through the implementation of import restrictions. Although this strategy provokes concern over its ramifications on major trade partners such as the UK, Reeves remains steadfast in her belief that the longstanding economic cooperation between the UK and the US will persist, bolstering prosperity under the current administration.
Reeves expresses strong confidence in sustaining a beneficial UK-US trade partnership despite challenges posed by potential new tariffs.
