Reeves to Trump: I'm standing up for free and open trade – Chancellor to announce customs review in face of US President's tariff war

Importance Score: 45 / 100 🔵

Chancellor Rachel Reeves is set to deliver a robust defense of “free and open” trade today, directly addressing concerns raised by Donald Trump’s tariff policies. Her remarks come amid fears of a potential global recession fueled by trade war implications. She will also announce a customs review.

Chancellor’s Stance on International Trade

The US President’s trade policies have led to fluctuations in share prices and increased worries about a global economic downturn.

Reeves’s address at the International Monetary Fund (IMF) in Washington signifies a shift in the Government’s approach. Previously, there had been hopes for a successful trade agreement with the US administration.

She is scheduled to meet with US Treasury Secretary Scott Bessent in Washington on the following day.

Measures to Prevent Unfair Trade Practices

In her address, Reeves will emphasize the Government’s commitment to taking decisive action against the potential “dumping” of inexpensive goods into the UK. This is particularly relevant as China and other Asian exporters seek alternative markets for their steel and lower-value products in response to the existing tariffs that are in place.

vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.

The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.

The proposed measures to protect the UK market include a review of current customs regulations. Specifically, the review will target arrangements that permit imports valued at less than £125 to enter the UK without tariffs.

Reeves is expected to tell fellow finance ministers and central bankers gathered in Washington: ‘We are in a new era of global trade. We must stand up for free and open trade – crucial to deliver our “Plan for Change” to make everyone better off. We must help businesses keep their access to trade around the world.’

Up until now, the Labour government has been carefully avoiding any statements that could potentially provoke the Trump White House, especially given the retaliatory actions taken against governments openly opposing the tariff system.

The UK has so far avoided the worst effects of the US tariffs, which include a general 10 per cent tariff on UK exports to the US and a 25 per cent levy on automobiles and steel.

Nevertheless, the US tariff has already prompted Jaguar Land Rover, a British luxury car manufacturer, to temporarily suspend exports to the US until the present ambiguity is resolved.

Supporting British Businesses Against Unfair Trade

Reeves’s strategy includes expanded support for British companies reporting instances of unfair trade.

The Government has pledged to enhance the monitoring of trade data and expedite the implementation of measures – effectively reciprocal trade barriers – to counter import surges into the UK market.

The Government is granting greater authority to the Trade Remedies Authority, the agency entrusted with defending the UK against unfair trade practices.

Reeves sees free trade as vital to Labour’s growth agenda. She has been heavily lobbied by business to end the Government’s passive response to the ‘Liberation Day’ assault on free trade.

The UK’s growth agenda already has been affected with the IMF lowering its forecast for growth this year by 0.5 per cent to 1.1 per cent.

Prior to the Washington gathering, the Government had hoped to finalize a trade agreement with the US.

Reeves’s intervention designed to shield the UK from potential influxes of foreign imports suggests that the Government is not fully convinced of a positive trade deal outcome.

Securing a favorable agreement for Britain required terminating the digital services tax, which is anticipated to generate £800 million this year, impacting US tech giants, including Amazon.

The likely decision to jettison this charge has caused consternation among High Street giants, which resent special treatment being given to American competitors at a time when they face severe cost pressures.

Potential Impact on Foreign Businesses

One possible consequence of Reeves’s measures may be alterations to the economic landscape for Chinese fashion brand Shein. The changes could dissuade the company from pursuing a listing on the London Stock Exchange.

🕐 Top News in the Last Hour By Importance Score

View More Top News ➡️