Rachel Reeves has stressed it is “imperative” for the UK to improve its trading relationship with the European Union (EU), amid US President Donald Trump’s global trade tariff war.
The Chancellor’s comments emerged in an interview with the Financial Times (FT) ahead of a crucial summit with EU leaders in London next month.
Reeves told the FT she was pushing for an ambitious economic agenda in the talks on May 19, which form a cornerstone of the Labour government’s “reset” policy with the EU, while continuing to rule out any move to rejoin the trading bloc’s customs union.
Speaking at No11 Downing Street, she told the newspaper: “Since Brexit, it has been harder for British firms to export around Europe, particularly smaller firms. Many feel shut out of European markets.
“I feel that in the current environment, there is a greater willingness from countries around the world to look at both tariff and non-tariff barriers that are holding back trade.
“Many of the developments, whether it is Russia’s invasion of Ukraine or the challenges in global trade at the moment, mean that there’s an even greater imperative to improve our trading relationships with Europe.”
Reeves also argued the UK-EU summit would be an opportunity to “refresh our relationship and make it easier for businesses to trade”, with “partners in Europe”.
The Chancellor is also, according to the FT, pushing for Prime Minister Sir Keir Starmer to explore UK alignment with the EU on regulations for industries such as chemicals, in a bid to improve access to markets.
She also discussed the impact of Trump’s trade war and market turmoil, as import taxes announced by the President last week took effect, including a 10 per cent levy on all UK goods along with a 25 per cent charge on cars and other taxes on steel and aluminium.
Trump also announced a new 104 per cent levy on Chinese imports, as the FTSE 100 fell again, wiping out most of Tuesday’s gains, and the Bank of England warned risks to the stability of the world financial system had increased because of the imposition of US tariffs.
Commenting on the announcement of a new Universal theme park in Bedford, which she called a “show of confidence”, Reeves pitched the UK as an attractive investing destination.
She stressed: “Growth is the number one mission of this government, and securing this investment, this landmark project, is testament to the stability and security that the UK offers as a place to invest.”
And on tariffs, she insisted she would seek to negotiate a US trade deal in Washington later this month for the IMF global finance ministers meeting, and said there was “absolutely no doubt trade will very much be on the agenda” at the summit, and “nothing is off the table”.
Reeves said: “No one wants to see a trade war. It’s in no one’s interest.
“Knee-jerk reactions are not going to be good for UK businesses or UK jobs, and so we’re approaching this in a responsible, calm way.”