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 Britainโs โnearest neighboursโ while signaling openness to lowering car tariffs for the US.
Emphasis on European Partnerships
Reeves stated that the UKโs trade relationship with the EU is โarguably even more importantโ than its transatlantic negotiations, citing proximity and existing economic integration. โIโve met French, German, Spanish, and other EU finance ministers this week because rebuilding European ties is vital for British jobs and consumers,โ she said.
Her remarks align with Downing Streetโs stance, which called the EUโs status as the UKโs largest trading partner a โstatement of fact.โ Prime Minister Keir Starmer has previously rejected a โfalse choiceโ 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 โin [their] national interests.โ 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 Trumpโs 25% levy on all auto imports, including UK vehicles. US Vice President JD Vance recently expressed optimism about a deal, stating there was a โgood chanceโ of success.
Political Reactions
Conservative Shadow Business Secretary Andrew Griffith criticized Reevesโ focus, arguing a US pact should take precedence. โWe already have tariff-free EU goods trade. Growing the economy requires a US deal,โ he told Sky News.
Liberal Democrat Treasury Spokesperson Daisy Cooper accused the government of โempty wordsโ on Europe, claiming it had โbent over backwards to appease Trumpโ 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 Trumpโs administration. โWeโre all grappling with tariffs,โ 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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