Trump tariffs live: Reeves says ‘nothing off the table’ in US trade talks after FTSE finally rallies

Rachel Reeves described the United States’ approach to tariffs as a “disproportional response to a genuine problem of global trade imbalances”.

Conservative MP Nick Timothy asked the Chancellor in the Commons: “The Chancellor talked earlier about the Government’s response to the new US trade policy, but what is the Government doing about China’s abuse of the world trade system?

“In particular, what will the Government do to challenge China’s status as a developing country at the WTO (World Trade Organisation) because this is the means by which China dodges so many of the rules imposed on countries like Britain and others in the West.”

Ms Reeves replied: “Trade issues are for the Secretary of State for Business and Trade, but I would say this: there are rightly concerns around global trade imbalance, but the response of the United States by putting tariffs on all countries – including the UK, that does not have a trade surplus – I think, is a disproportional response to a genuine problem of global trade imbalances.”

Rachel Reeves has said “nothing is off the table” in US trade talks.

The UK chancellor told MPs today that a trade war is in “nobody’s interests” as she warned that the impact of Donald Trump’s sweeping global tariffs could be “profound”.

She added that the Government would remain “pragmatic” as it looks into a deal with the US.

Ms Reeves told Commons today: “This Government is clear-eyed that our response to global change cannot be to watch and wait, but instead to act decisively, to take the right decisions that are in our national interest.”

She added: “A trade war is in nobody’s interests, it is why we must remain pragmatic, cool-headed and pursue the best deal with the United States that is in our national interest.

“This remains our priority, and that was part of the discussion that I had with US treasury secretary Scott Bessent last week, but we have been clear, nothing is off the table.”

She referred to measures announced since the weekend, including on electric vehicles, and shortening times to set up clinical trials.

Ms Reeves added: “I know that the challenges facing the global economy and the potential impact could be profound, and as a Government we must step up to that challenge to deliver security for working people.”

The impact of Donald Trump’s tariffs on the UK was discussed by the prime minister and his senior government colleagues when they met on Tuesday, according to Downing Street.

Sir Keir Starmer “underlined the Government’s resolve to protect our key industries and support the wider economy” in light of the sweeping US import taxes, according to a readout of Tuesday morning’s Cabinet meeting provided by No 10.

“He reiterated that businesses have been clear they want a calm and pragmatic response from the Government, continued dialogue with the US on an economic deal, while making preparations for all of the options available in response,” the readout added.

Sir Keir also reiterated his warning, first given during a visit to Jaguar Land Rover’s West Midlands car plant on Monday, that “this new era for the global economy was not a passing phase”.

Jonathan Reynolds, the Business Secretary, also insisted “the business community supported the Government’s calm response”.

Meanwhile, Rachel Reeves is continuing progress on a trade deal with India, according to No 10, and told Cabinet the UK will “continue to pursue an economic deal with the US, better trading relations with other countries including India, the Gulf, and the EU”.

Shares of US Steel are rising ahead of the bell after President Donald Trump ordered a new national security review of Nippon Steel’s proposed bid to buy US Steel for nearly 15 billion US dollars.

President Joe Biden blocked the deal just before leaving office and Mr Trump had vowed to do the same in previous months.

Late on Monday Mr Trump ordered the Committee on Foreign Investment in the United States to review the transaction “to assist me in determining whether further action in this matter may be appropriate.”

Shares soared 16% on Monday and are up nearly 3% before the opening bell on Tuesday.

Rachel Reeves has said she will meet her US counterpart Scott Bessent “shortly”.

With the fallout from Donald Trump’s universal tariffs growing, the chancellor said she is discussing “a range of areas” with the US Treasury secretary.

“The focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on those sectors that are subject to the higher tariffs,” Ms Reeves said.

“Discussions are ongoing across a range of government departments, including the Treasury, with the United States, and I will be meeting US Treasury secretary Scott Bessent shortly,” she added.

Buying British in response to Donald Trump’s tariff war is “not a good way forward”, the chancellor has warned.

Amid calls from the Liberal Democrats to encourage British consumers to take a nationalist response to the US president’s tariffs, Rachel Reeves urged against such an approach.

She said: “In terms of buying British, I think everyone will make their own decisions.“What we don’t want to see is a trade war with Britain becoming inward looking, because if every country in the world decided they only wanted to buy things produced in their country, that is not a good way forward.

“Our country has benefited hugely from access to global markets, and we will continue to want to be able to do that.”