Rachel Reeves has mentioned she is “confident” commerce flows with the US will proceed below President-elect Donald Trump regardless of his proposal to place up tariffs.
The chancellor was requested what implications the results of the American election could have on her plans for development as she confronted questions from the Commons Treasury Committee.
Politics Reside: Starmer fights hearth with hearth in first conflict with Badenoch
It was put to her that funding banking firm Goldman Sachs has downgraded its forecast for the UK’s financial development subsequent 12 months from 1.6 to 1.4%, whereas EU officers are anticipating a discount in exports to the US of €150bn (£125bn).
Ms Reeves mentioned it’s “too early” to start out making modifications to forecasts due to Mr Trump’s victory however that the UK’s buying and selling relationship with the US is “absolutely crucial”.
“The US are our single biggest trading partner… trade between our two countries, I think it’s £311bn a year,” she mentioned.
“I’m confident that those trade flows will continue under the new president.”
A tariff is a tax on imports or exports of products between nations and is used to encourage or safeguard home trade.
Mr Trump has mentioned he needs to extend tariffs on items imported from around the globe by 10%, rising to 60% on items from China, as a part of his plan to guard US industries.
Picture:
Rachel Reeves. Pic: PA
Ms Reeves mentioned the UK authorities will “continue to make the case for free trade” with him, including: “We will make strong representations about the importance of a free and open trade, not just between ourselves and the United States, but globally.”
‘We’ll put together for various eventualities’
Requested by Tory former Treasury minister John Glen if it was reasonable to hunt to affect Mr Trump, the chancellor mentioned: “We’ve got another couple of months before the inauguration.
“Clearly we are going to start these conversations. We’ll put together for various eventualities.
“I absolutely do not want to sound in any way sanguine. On the other hand, I am optimistic about our ability to shape the global economic agenda, as we have under successive governments.”
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Trump wins: Demographics and key points
Mr Trump’s victory within the US presidential election over Democratic opponent Kamala Harris has drawn a blended response within the UK.
Prime Minister Sir Keir Starmer and Conservative chief Kemi Badenoch have each congratulated him on the “impressive” consequence and vowed to work carefully with him.
Nevertheless, Liberal Democrat chief Sir Ed Davey mentioned it was a “dark, dark day for people around the globe” as he referred to as Mr Trump a “dangerous destructive demagogue”.
Mr Trump’s victory was confirmed when he surpassed 270 electoral faculty votes by profitable Wisconsin, and he stays on the right track to assert all seven swing states.
