Reeves states UK to strongly advise Trump on tariff plans | Politics News
Rachel Reeves expressed confidence that trade flows with the United States will continue under President-elect Donald Trump despite his proposal to impose tariffs.
When questioned by the Commons Treasury Committee about the implications of the American election results on her growth plans, the chancellor responded.
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Goldman Sachs has downgraded its UK economic growth forecast for next year from 1.6% to 1.4%, while EU officials anticipate a decrease in exports to the US by €150bn (£125bn).
Despite Mr. Trump’s victory, Ms. Reeves believes it is premature to revise forecasts and emphasizes the importance of the UK’s trading relationship with the US.
“The US is our largest trading partner, with trade reaching £311bn annually,” she stated.
“I am confident that these trade flows will persist under the new president.”
A tariff is a tax imposed on imported or exported goods between countries to protect domestic industries.
Mr. Trump aims to raise tariffs on goods imported from various countries, particularly China, to safeguard US industries.
Rachel Reeves. Pic: PA
Based on analysis by Sky News correspondent Paul Kelso, this protectionist move could potentially lead to trade conflicts with China and the EU.
Ms. Reeves assured that the UK government will advocate for free trade with Mr. Trump and emphasize the importance of global free and open trade.
‘We’ll prepare for different eventualities’
When asked by former Treasury minister John Glen about influencing Mr. Trump, the chancellor stated that dialogues would commence before the inauguration.
“We will prepare for various scenarios,” she added.
“While I do not wish to sound overly optimistic, I am hopeful about our ability to shape the global economic agenda, as we have done under previous governments.”
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Trump wins: Demographics and key issues
Mr. Trump’s victory in the US presidential election has received a mixed response in the UK.
Both Prime Minister Sir Keir Starmer and Conservative leader Kemi Badenoch have congratulated him on the result and pledged to work closely with him.
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However, Liberal Democrat leader Sir Ed Davey labeled it a “dark day for people worldwide” and criticized Mr. Trump as a “dangerous destructive demagogue”.
Mr. Trump’s victory was solidified when he secured over 270 electoral college votes by winning Wisconsin, positioning him to win all seven swing states.
