Reeves confirms on trade as Trump’s tariffs threaten UK-US economic relationship
Chancellor Rachel Reeves has played down fears of increased protectionism under new trade tariffs expected by Donald Trump, reaffirming Britain’s commitment to strong economic ties with the United States.
In his first remarks after Mr Trump’s re-election, Reeves stressed the UK’s intention to support “free and open trade” between the two countries.
Amidst speculation about Trump’s promise to impose rising tariffs – up to 60% on Chinese imports and 10-20% on other foreign goods – Reeves agreed to a shift in prioritizing domestic production and economic sovereignty in the US. He suggested that these measures reflect “reality” in economic policy instead of pure protectionism, adding that “caring about where things are made, who made them, and who owns them” is becoming increasingly relevant to global policy makers.
Appearing before the Select Committee on the Treasury on Wednesday, Reeves noted, “Our trade relationship and our economic relationship with the United States is very important. The US is our single biggest trading partner, trading £311bn a year. That relationship is important not only for trade but also for security and self-defense.”
Reeves stressed that while the UK opposes the new tariffs, it is ready to work with the US in areas of common interest and will make “strong representations” against any possible tariffs on British goods. He also emphasized the UK’s role in shaping the global economic agenda, noting that free and open trade benefits both the UK and the US.
“Access to free trade is what makes us rich as communities,” he said. “We are not just an actor who does nothing. We have the ability to influence the global trade framework, and I am confident in our ability to do so, as we have under successive governments.”
Reeves’ statements come as Mr Trump renews his focus on reducing the US trade deficit with China and bolstering domestic production through import restrictions. This approach, however, raises concerns about the impact on key trading partners, including the UK, as they navigate the consequences of US tariff-driven trade policy.
The Chancellor’s comments reflect a balancing act, aiming to maintain strong economic ties with the US while expressing support for an open global trade environment that fosters mutual prosperity. With the UK-US trade relationship worth £311bn annually, Reeves expressed confidence that the two countries would continue to benefit from economic cooperation under the Trump administration, as they have in the past.
