UK Prioritizes EU Trade Over US Relations

UK Chancellor of the Exchequer Rachel Reeves emphasized that Britain’s trade relationship with the European Union remains more critical than its economic ties with the United States, just hours before a key meeting with US Treasury Secretary Scott Bessent.

“I understand why there’s so much focus on our trading relationship with the US, but actually, our trade with Europe is arguably even more important,” Reeves told reporters in Washington. “They’re our nearest neighbors and trading partners.”

Her remarks come as the UK seeks to navigate post-Brexit trade dynamics and mitigate the impact of US tariffs. President Donald Trump imposed 10% tariffs on UK exports as part of broader “reciprocal” trade measures, prompting British officials to push for exemptions. Reeves acknowledged the need for a US trade deal but stressed that political and fiscal stability must underpin any agreement.

Rebuilding European Ties Ahead of Crucial Summit

With an EU-UK summit scheduled for May 19, Reeves signaled that her immediate focus is strengthening economic links with European allies. This week, alongside meetings with US officials, she held talks with finance ministers from France, Germany, Spain, Poland, Sweden, and Finland.

“It’s vital that we rebuild strong trading relationships with our nearest neighbors in Europe,” she said. “We’re going to do that in a way that benefits British jobs and consumers.”

Next month’s summit is expected to address post-Brexit cooperation, including a potential sanitary and phytosanitary agreement to reduce export checks and a deal on carbon emissions. The International Monetary Fund’s managing director recently praised the thawing UK-EU relations, likening the two sides to “divorcees that are now dating.”

Balancing US Relations Amid Tariff Pressures

While Downing Street downplayed any suggestion of sidelining US ties—noting that the EU is Britain’s largest trading partner “as a matter of public record”—Reeves faces mounting pressure over Trump’s 25% auto tariffs, which UK automakers warn could trigger job losses.

In response, she indicated openness to lowering Britain’s 10% tariff on car imports in exchange for concessions. Speaking at a Washington reception for US investors, Reeves drew parallels between the economic frustrations of British and American voters, noting that both had “voted for change” due to stagnant wages and declining industries.

“As elected politicians, we have to respond to that,” she said.