Rachel Reeves says UK trade ties with Europe ‘even more important’ than the US

The UK Chancellor Rachel Reeves said their relationship with the EU is way more crucial than the one with the US. Reeves also noted that the UK is more focused on moving closer to the EU on matters of trade. 

In an interview with the BBC, Rachel Reeves suggested that moving closer to the EU on trade is a bigger priority despite her current focus on talks with the US. She said the UK government was giving it all to cut a trade deal with the Trump administration.

Earlier this week, Reeves suggested that the UK could reduce car import tariffs from 10% to 2.5%. Reeves said reducing tariffs by 8.5 percentage points is part of a greater trade deal. 

Reeves says the UK will focus on resetting trade ties with the EU

The UK Chancellor Rachel Reeves said that the country’s trading ties with Europe are more essential than those with the United States. Reeves declared a shift of Britain’s focus from its bilateral trade dispute with the US to the upcoming summit with Europe. The chancellor noted that she has been working on an ambitious reset of trade ties with the EU. 

Reeves suggested the creation of a young travel scheme that would facilitate free movement. She also discussed aligning the United Kingdom with Brussels’ regulations to minimize trade barriers. The chancellor stated that she understood why there was a lot of focus on the UK’s trading ties with the US. 

She suggested the UK’s trade ties with the EU are arguably more important. Reeves noted that it is important for the UK to reset its relationship with its nearest neighbors in the EU. The chancellor said she has already met with ministers from Germany, Sweden, Finland, France, and Spain.

The chancellor declared that they would rebuild the trade relations with the EU in a way that is good for British consumers and jobs. The Prime Minister of the United Kingdom, Sir Keir Starmer, has maintained that he would not choose between the US and the EU. Starmer added that he focuses on harmonizing the country’s two key global trade ties. 

Britain hopes to strike a trade deal with the US

The UK Prime Minister said that the EU is their biggest trading partner. However, he noted that the EU and the US are of great importance to Britain. The Prime Minister declared that the UK treats both the EU and the US with massive respect. According to government records, in 2023, the US accounted for 21.2 % of British exports, which matched the EU’s 41.2%. 

Reeves announced on Friday that she would be discussing trade matters with her US counterpart Scott Besset in Washington. She noted that Britain is pushing hard to strike a deal with the US. Reeves has also signaled that Britain could cut its tariffs on US car imports. She noted that the move to lower tariffs was a broader part of trying to cut a deal with the US President Donald Trump. 

The chancellor said that she would like to see tariffs and non-tariff trade barriers minimized between the US and the UK. Reeves revealed that the UK is trying to reduce the taxes imposed by the Trump administration by 25% for automobiles, aluminum, and steel and 10% on other United Kingdom exports. She suggested Britain could reduce its car import taxes from 10% to 2.5%. The chancellor said she was open to a better deal from the Trump government.

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