Chancellor Rachel Reeves has downplayed fears of escalating protectionism underneath Donald Trump’s anticipated new commerce tariffs, reaffirming Britain’s dedication to a strong financial relationship with the US.
In her first feedback following Mr Trump’s re-election, Reeves emphasised the UK’s intent to uphold “free and open trade” between the 2 international locations.
Amid hypothesis over Trump’s pledge to impose steep tariffs—as much as 60% on Chinese language imports and 10-20% on different international items—Reeves acknowledged the shift towards prioritising home manufacturing and financial sovereignty within the US. She instructed that such measures replicate “realism” in financial coverage relatively than pure protectionism, including that “caring about where things are made, who makes them, and who owns them” has grow to be more and more related for international policymakers.
Showing earlier than the Treasury Choose Committee on Wednesday, Reeves remarked, “Our trading relationship and our economic relationship with the United States is absolutely crucial. The US is our single biggest trading partner, with trade flows of £311bn a year. That relationship is vital not only for trade but also for security and defence.”
Reeves maintained that whereas the UK opposes new tariffs, it is able to work with the US in areas of shared curiosity and can make “strong representations” towards any tariffs which may be levied on British items. She additionally underscored the UK’s function in shaping the worldwide financial agenda, noting that free and open commerce advantages each the UK and the US.
“Free trade access is what makes us richer as societies,” she said. “We’re not just a passive actor. We have the capacity to influence the global trading framework, and I am optimistic about our ability to do so, as we have under successive governments.”
Reeves’s statements come as Mr Trump renews his give attention to decreasing America’s commerce deficit with China and bolstering home manufacturing via import restrictions. This method, nevertheless, raises considerations concerning the influence on key commerce companions, together with the UK, as they navigate the implications of a tariff-driven US commerce coverage.
The Chancellor’s feedback replicate a balancing act, aiming to keep up robust financial ties with the US whereas voicing assist for an open international commerce setting that promotes mutual prosperity. With the UK-US commerce relationship valued at £311bn yearly, Reeves expressed confidence that the 2 nations would proceed to learn from financial cooperation underneath Trump’s administration, as they’ve up to now.
