Reeves Prioritizes EU Trade Over US Deal, Cites Proximity and Economic Ties
UK Chancellor Rachel Reeves has stated that the country’s trading relationship with the European Union is arguably “more important” than its economic ties with the United States, despite ongoing talks in Washington aimed at brokering a trade deal with the US.
In an interview with the BBC, Reeves emphasized that geographic proximity and existing economic integration with EU nations make strengthening those ties a more immediate priority. This comes ahead of a planned EU-UK summit in May intended to reset relations post-Brexit.
“While I’m in Washington meeting with US Treasury Secretary Scott Bessent, I’ve also been engaging with finance ministers from France, Germany, Spain, Poland, Sweden, and Finland,” Reeves said. “We’re focused on rebuilding our trade connections with our European neighbors in ways that support British jobs and consumers.”
Balancing US Talks and EU Relations
Despite her comments on EU trade, Reeves confirmed that the UK is working “flat out” to finalize a US-UK trade deal, which could include a reduction in tariffs on American car imports from 10% to 2.5%. She also acknowledged the wider context of global tariff tensions, particularly under President Donald Trump’s administration, which has imposed 25% tariffs on UK car exports.
“We understand President Trump’s rationale for addressing trade imbalances,” she said. “We’re all grappling with tariffs, and there’s recognition that reform is needed.”
Political Reactions and Criticism
A Downing Street spokesperson defended Reeves’ remarks, calling them a statement of fact given the EU remains the UK’s largest trading partner. Labour leader Sir Keir Starmer has previously said that choosing between the EU and the US is a “false choice.”
However, Conservative Shadow Business Secretary Andrew Griffith criticized the remarks, arguing that the UK already has tariff-free trade with the EU and should focus on striking new deals, particularly with the US. “If the government wants to grow the economy, a US deal should be the top priority,” Griffith told Sky News.
Liberal Democrat MP Daisy Cooper said Reeves was right about the importance of EU trade, but dismissed the government’s efforts as “empty words” lacking in practical action.
Challenges Amid Economic Uncertainty
The backdrop to these diplomatic moves is an uncertain economic environment. Reeves acknowledged that investment confidence is being shaken by fluctuations in bond and equity markets, adding that such instability undermines long-term growth.
She also noted that she’s working with Canadian and European officials to remove non-tariff trade barriers and improve regulatory cooperation across sectors.
With multiple economic and political interests in play, Reeves’ remarks highlight the UK’s delicate balancing act between maintaining ties with its biggest trading bloc in Europe and securing new opportunities with global partners like the US.
