UK Chancellor Rachel Reeves on Friday said the country’s trade relationship with the EU is “arguably more important” than its ties with the US, despite her ongoing focus on securing a deal with Washington.
Speaking to the BBC ahead of her meeting with US Treasury Secretary Scott Bessent on Friday, Reeves acknowledged the attention given to transatlantic trade, but stressed the strategic importance of improving ties with Europe.
“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, because they’re our nearest neighbors and trading partners,” she said.
Reeves added that while in Washington, she had met with several European finance ministers, including those from France, Germany, Spain, Poland, Sweden, and Finland, in an effort to rebuild economic links with the EU.
“Obviously I’ve been meeting Scott Bessent this week whilst 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 – because it is so important that we rebuild those trading relationships with our nearest neighbors in Europe, and we’re going to do that in a way that is good for British jobs and British consumers,” she said.
The chancellor’s remarks came as the UK prepares for a key summit with the EU in May, intended to “reset” the relationship post-Brexit.
Meanwhile, discussions continue with the US, particularly around automotive tariffs, with Reeves signaling earlier this week that the UK could reduce tariffs on US car imports from 10% to 2.5% as part of a wider agreement.
On the subject of US tariffs and economic policy under the Trump administration, Reeves said: “I understand what President [Donald] Trump wants to address” with his tariffs.
She also drew parallels between political shifts in both countries, noting similarities in how recent governments have risen to power amid public dissatisfaction with the economy.