Chancellor Rachel Reeves has played down fears of escalating protectionism under Donald Trump’s expected new trade tariffs, reaffirming Britain’s commitment to a robust economic relationship with the United States.
In her first comments after Trump’s re-election, Reeves emphasized Britain’s intention to maintain “free and open trade” between the two countries.
Amid speculation about Trump’s promise to impose steep tariffs — up to 60% on Chinese imports and 10-20% on other foreign goods — Reeves acknowledged the shift to prioritizing US domestic manufacturing and economic sovereignty. She suggested such measures reflect “realism” in economic policy rather than pure protectionism, adding that “concerns 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 noted: “Our trade relationship and our economic relationship with the United States are absolutely critical. The US is our largest trading partner, with trade flows of £311 billion per year. That relationship is crucial not only for trade, but also for security and defense.”
Reeves insisted that while Britain is opposed to new tariffs, it is willing to work with the US on areas of shared interest and will make “strong protests” against any tariffs that could be imposed on British goods. She also underlined Britain’s role in shaping the global economic agenda, noting that free and open trade benefits both Britain and the US.
“Access to free trade is what makes us richer as a society,” 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 that, as we have done under successive administrations.”
Reeves’ comments come as Trump renews his focus on reducing the U.S. trade deficit with China and boosting domestic manufacturing through import restrictions. However, this approach raises concerns about the impact on key trading partners, including Britain, as they deal with the implications of a tariff-based US trade policy.
The Chancellor’s comments reflect a balancing act aimed at maintaining strong economic ties with the US while voicing support for an open global trading environment that promotes mutual prosperity. With the trading relationship between Britain and the US valued at £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.