Rachel Reeves has instructed anxious households “we have your backs” after Donald Trump’s tariffs sparked fears of a worldwide recession.
The chancellor mentioned she has spoken to the governor of the Financial institution of England Andrew Bailey this morning and he has confirmed that UK markets “are functioning effectively and that our banking system is resilient”.
Politics Dwell: Conservatives keen to ‘help’ authorities amid tariff turbulence
Nonetheless, she mentioned the US president’s actions “will continue to have huge implications for the world’s economy”.
Talking within the Commons, Ms Reeves added: “I do know that that is an anxious time for households who’re nervous about the price of residing.
“We have your backs. And British businesses who are worried about what a changing world will mean for them. We have your backs too.”
Mr Trump has imposed a sequence of tariffs of various severity on international locations internationally, with the UK hit by the ten% baseline tariff on all imports and the 25% tariff on all vehicles imported to the US.
His actions have sparked fears of a worldwide commerce conflict, with the UK’s benchmark inventory market index, the FTSE 100, solely simply witnessing a slight rise this morning after three days of steep losses.
Ms Reeves mentioned the federal government wouldn’t “watch and wait”, citing Sir Keir Starmer’s determination to loosen up guidelines round electrical automobiles to assist automotive producers.
She added that the federal government remains to be targeted on securing a commerce take care of the US and she or he will likely be assembly with Washington’s Treasury Secretary Scott Bessent “shortly”.
Pressed for particulars by shadow chancellor Mel Stride, Ms Reeves mentioned the main focus of the discussions is on decreasing tariff and non-tariff limitations to commerce, “with a particular focus on those sectors that are subject to the higher tariffs”.
She mentioned: “Although the 10% tariffs are lower than many other countries around the world, and we welcome that, the additional tariffs on cars, on steel and potentially on life sciences pose a real challenge to our country because those are some of our biggest export markets.”
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