UK Chancellor Rachel Reeves has declared that strengthening trade with the European Union remains a higher priority than securing a deal with the United States, despite ongoing talks in Washington. Speaking to the BBC during the IMF Spring Meetings, Reeves emphasized the economic significance of Britain’s “nearest neighbours” while signaling openness to lowering car tariffs for the US.
Emphasis on European Partnerships
Reeves stated that the UK’s trade relationship with the EU is “arguably even more important” than its transatlantic negotiations, citing proximity and existing economic integration. “I’ve met French, German, Spanish, and other EU finance ministers this week because rebuilding European ties is vital for British jobs and consumers,” she said.
Her remarks align with Downing Street’s stance, which called the EU’s status as the UK’s largest trading partner a “statement of fact.” Prime Minister Keir Starmer has previously rejected a “false choice” between prioritizing the EU or US.
US Trade Negotiations Progress
Reeves met US Treasury Secretary Scott Bessent on Friday, tweeting afterward that both nations seek a trade agreement “in [their] national interests.” The UK is considering reducing tariffs on US car imports from 10% to 2.5% as part of broader negotiations.
The move comes amid President Donald Trump’s 25% levy on all auto imports, including UK vehicles. US Vice President JD Vance recently expressed optimism about a deal, stating there was a “good chance” of success.
Political Reactions
Conservative Shadow Business Secretary Andrew Griffith criticized Reeves’ focus, arguing a US pact should take precedence. “We already have tariff-free EU goods trade. Growing the economy requires a US deal,” he told Sky News.
Liberal Democrat Treasury Spokesperson Daisy Cooper accused the government of “empty words” on Europe, claiming it had “bent over backwards to appease Trump” while neglecting EU relations.
Global Tariff Challenges
Reeves acknowledged shared struggles with protectionist policies, noting voter frustration over economic stagnation had propelled both her government and Trump’s administration. “We’re all grappling with tariffs,” she said, referencing G20 discussions on trade barriers.
The UK will host an EU summit in May aim
ed at resetting post-Brexit relations, while US tariff exemptions for allies, including the UK, remain paused until July.
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