British Finance Minister's Response to Trump's Trade Proposals

LONDON (Reuters) – British finance minister Rachel Reeves stated on Wednesday her intention to make "strong representations" regarding the importance of free trade to the incoming administration of President-elect Donald Trump. Trump has proposed imposing tariffs on all U.S. imports.

> "We are not just a passive actor in this," Reeves told the Treasury Committee in the UK parliament.

She emphasized that the trade relationship with the United States is significant and that the UK would advocate for free and open trade not only with the U.S. but globally.

Trump's proposed tariff plan includes a 10% universal tariff on imports from all foreign nations and extra tariffs specifically on Chinese imports.

Earlier that day, Goldman Sachs analysts downgraded their British economic growth forecast for 2025, reducing it from 1.6% to 1.4%, attributing the change to potential higher U.S. tariffs and associated financial risks for European countries post Trump's re-election.

Additionally, a prominent British think tank warned that the UK’s already sluggish economic growth could drop by more than half next year if these tariff measures are enacted.

Reeves commented that it’s premature to adjust official forecasts due to the election outcomes and remained hopeful that the threat of tariffs may not come to fruition.

> "President Trump has been president of the United States before, and we continue to have a strong and healthy economic relationship. As a government, we will advocate for free trade," she remarked.

She believes that trade flows will persist under the new administration and assured that the UK government would address trade concerns in upcoming discussions with U.S. officials.

> "We will prepare for different eventualities. I don’t want to sound overly optimistic, but I am confident in our ability to influence the global economic agenda as we have been doing under prior administrations."