British Chancellor Rachel Reeves played down fears of escalating protectionism in light of Donald Trump’s expected new trade tariffs, stressing Britain’s commitment to a strong economic relationship with the United States.
In her first comments after Trump’s re-election, Reeves stressed the UK’s determination to support “free and open trade” between the two countries.
Amid speculation about Trump’s pledge to impose steep tariffs — up to 60% on Chinese imports and 10% to 20% on other foreign goods — Reeves acknowledged a shift toward prioritizing domestic manufacturing and U.S. economic sovereignty. She suggested that such measures reflect “realism” in economic policy rather than pure protectionism, adding that “concerning where things are made, who makes them, and who owns them” has become increasingly important for global policymakers.
Appearing before the Treasury Select Committee on Wednesday, Reeves said: “Our trading relationship and our economic relationship with the United States is crucial. The United States is our largest trading partner, with trade flows amounting to £311 billion a year. This relationship is vital not only for trade but Also for security and defence.
Reeves stressed that although the United Kingdom opposes new tariffs, it is ready to work with the United States in areas of mutual interest and will make “strong protests” against any tariffs that may be imposed on British goods. She also stressed 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 richer as societies,” she said. “We are not just a passive actor. We have the ability to influence the global trade framework, and I am optimistic about our ability to do so, as we have done under successive governments.
Reeves’ statements come as Trump renews his focus on reducing the US trade deficit with China and boosting domestic manufacturing through import restrictions. However, this approach raises concerns about its impact on key trading partners, including the UK, as they deal with the implications of US tariff-based trade policy.
The Chancellor’s comments reflect a balancing act aimed at maintaining strong economic relations with the United States while expressing support for an open global trading environment that promotes mutual prosperity. With trade relations between the UK and the US worth £311 billion annually, Reeves expressed confidence that the two countries would continue to benefit from economic cooperation under the Trump administration, as they have done in the past.
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