Chancellor Rachel Reeves has downplayed fears of escalating protectionism under Donald Trump’s anticipated new trade tariffs, reaffirming Britain’s commitment to a robust economic relationship with the United States.
In her first comments following Mr Trump’s re-election, Reeves emphasized the UK’s intent to uphold “free and open trade” between the two countries.
Amid speculation over Trump’s pledge to impose steep tariffs—up to 60% on Chinese imports and 10-20% on other foreign goods—Reeves acknowledged the shift toward prioritising domestic manufacturing and economic sovereignty in the US. She suggested that such measures reflect “realism” in economic policy rather than pure protectionism, adding that “caring about where things are made, who makes them, and who owns them” has become increasingly relevant for global policymakers.
Appearing before the Treasury Select 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 while the UK opposes new tariffs, it is ready to work with the US in areas of shared interest and will make “strong representations” against any tariffs that may be levied on British goods. She also underscored the UK’s role in shaping the global economic agenda, noting that free and open trade benefits both the UK and the US.
“Free trade access is what makes us richer as societies,” she stated. “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 focus on reducing America’s trade deficit with China and bolstering domestic manufacturing through import restrictions. This approach, however, raises concerns about the impact on key trade partners, including the UK, as they navigate the implications of a tariff-driven US trade policy.
The Chancellor’s comments reflect a balancing act, aiming to maintain strong economic ties with the US while voicing support for an open global trade environment that promotes mutual prosperity. With the UK-US trade relationship valued at £311bn annually, Reeves expressed confidence that the two nations would continue to benefit from economic cooperation under Trump’s administration, as they have in the past.
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Reeves reassures on trade as Trump tariffs threaten UK-US economic ties