Rachel Reeves emphasises the UK’s trade deficit with the US as protection against tariffs while prioritising infrastructure investments despite potential environmental backlash.
The UK will not be a target of tariffs under Donald Trump’s proposed trade agenda, Chancellor Rachel Reeves assured at the World Economic Forum in Davos. Stressing the strength of US-UK trade relations, Reeves underscored Britain’s commitment to fostering economic growth and international investment during a time of domestic stagnation.
Her comments also highlighted a shift in government priorities toward backing infrastructure projects, even at the expense of environmental considerations. This balancing act reflects the government’s intention to restore investor confidence and accelerate growth despite internal and external challenges.
Uk-Us Trade Ties Provide Tariff Protection
Chancellor Rachel Reeves has downplayed concerns over potential tariffs from Donald Trump, citing the UK’s trade deficit with the US as a key factor insulating Britain from such measures. Trade between the two nations, valued at £300 billion annually, is a cornerstone of their economic relationship, with one million jobs directly supported on both sides of the Atlantic.
Speaking in Davos, Reeves emphasised the importance of open trade: “I believe in free and open trade, and I’ll be making that case to my counterparts in the United States. I’m excited about the opportunity to work with the new Trump administration.”
Reeves also plans to meet with the incoming US Treasury secretary to bolster bilateral cooperation. Her comments follow concerns about Trump’s protectionist tendencies, which could pose risks to global trade stability. Reeves’ reassurances aim to position the UK as a reliable and open trade partner in the eyes of international markets.
Economic Growth Takes Precedence Over Green Concerns
Reeves has reaffirmed her commitment to boosting economic growth by supporting large-scale infrastructure projects, including the controversial third runway at Heathrow Airport. This shift prioritises economic benefits over environmental objections, marking a decisive stance on previously stalled initiatives.
She criticised the government’s past hesitancy to back infrastructure investment, describing it as a lost opportunity for growth. “We can’t carry on like that, because if we do, we will miss out on crucial investment here into Britain. You’ve already seen a number of decisions, including on Stansted and City Airport, on energy projects, on transport infrastructure, because we are determined to grow the economy.” Reeves stated, highlighting the need for modernisation in areas like transport and energy.
While her pro-growth strategy has been well-received by business groups, it has sparked tensions within her own party, particularly with figures like Energy Secretary Ed Miliband, who champion the UK’s net-zero commitments. Reeves acknowledged the challenges but argued that regulatory reforms could enable sustainable development while attracting vital foreign investment.
