A day after the meeting between the President of the European Commission, Ursula von der Leyen, and UK Prime Minister Keir Starmer, the UK finance minister said that trade relations with the EU may take precedence over those with the US.
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Just hours before a meeting in Washington with US Treasury Secretary Scott Bessent, Rachel Reeves, the UK's Chancellor of the Exchequer - the finance minister - said that the UK’s trade relationship with the EU remained a higher priority than its economic ties with the United States.
“I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important,” Reeves told reporters in Washington, adding: “Because they’re our nearest neighbours and trading partners.”
US president Donald Trump imposed 10% tariffs on UK exports on “Liberation Day”, the day he announced “reciprocal” tariffs with US trading partners across the globe. The UK hopes to secure a trade deal with the US, Reeves said, claiming that the UK has to offer “political and financial, including fiscal, stability”.
However, in the run-up to a crucial EU-UK summit scheduled for 19 May, Reeves made clear that her focus remains on strengthening the relationships the UK is steadily rebuilding with its European neighbours.
“Obviously I’ve been meeting Scott Bessent this week while I’m in Washington, but I’ve also this week met the French, the German, the Spanish, the Polish, the Swedish, the Finnish finance ministers,” she said, adding that rebuilding a good relationship the EU was important in a way that is “good for British jobs and British consumers.”
The UK and the EU should discuss a post-Brexit reset at next month’s summit. The British want to table a sanitary and phytosanitary deal to eliminate checks on UK exports to the EU and a deal on carbon emissions.