No10 has resisted calls for a “buy British” campaign in light of US tariffs, after the Chancellor slapped down the idea and suggested it could be a barrier to trade.
Rachel Reeves warned against the UK becoming “inward looking” as she faced calls in the Commons to encourage the public to buy more British goods and produce.
And Downing Street appeared to echo the Chancellor’s stance, but suggested it was possible to take a “two-pronged” approach on trade, being an “open-trading” nation while also backing British businesses.
As she appeared in the Commons on Tuesday morning, Reeves was asked by Liberal Democrat Treasury spokeswoman Daisy Cooper whether the government will launch a “buy British” campaign in response to US tariffs.
She told MPs: “People up and down the country will be incredibly concerned about what Trump’s trade war means for their living standards and for their communities, but at the same time people want to show that Britain is not going to take Trump’s tariffs lying down.”
Cooper added: “Will the Chancellor and the government commit to a ‘buy British’ campaign as part of a broader national effort to encourage people to buy British here at home?”
Sir Ed Davey, the Lib Dem leader, launched a campaign to promote British businesses and produce on Monday.
But Reeves replied that “ratcheting up barriers to trade, ratcheting up tariffs will not be in our country’s interests, whether that’s in inflation or indeed for supply chains”.
She added: “In terms of buying British, I think everyone will make their own decisions.
“What we don’t want to see is a trade war, with Britain becoming inward-looking, because if every country in the world decided that they only wanted to buy things produced in their country, that is not a good way forward.”
Asked by journalists if the Prime Minister would echo his Chancellor’s sentiment, Sir Keir Starmer’s official spokesman said: “Well, of course, we’re an open-trading nation.
“That is something the Prime Minister and the Chancellor have previously said, and we want to see fewer trade barriers around the world, such that we’re continuing to support our economy.
“At the same time, we also continue to prioritise and support British manufacturers, British producers. We have a significant programme of support, whether it’s farmers, whether it’s manufacturers, as yesterday with supporting the car industry.
“So, we can take a two-pronged approach. We can be an open-trading nation whilst also supporting British producers and manufacturers.”
Asked why the government would not make this an official campaign, the spokesman replied: “Well, it’s up to people to decide where they want to buy.
“We are not going to tell people where they buy their stuff, but the Government is always going to back British producers, British manufacturers.”