Reeves targets Trump trade deal as UK economy stalls

Chancellor frustrated by new figures amid US tariff fears

- ARCHIE MITCHELL

Rachel Reeves has set out plans to target a free trade deal with Donald Trump after saying she is “not satisfied” with the UK’s flatlining economy.

As official figures showed economic growth stalling under Labour, the chancellor said she wanted to boost trade with the US and “looks forward to working with President-Elect Trump”.

“There’s more than £300bn of trade flows between the UK and the United States every year, and we want to see that trade increase, whether that's through a free trade agreement or through further improvements in our trade and investment flows,” Ms Reeves told ITV.

During the election, Mr Trump unveiled plans to impose 20 per cent tariffs on all imports to the US, with the levy rising to 60 per cent for Chinese imports.

The move would pile pressure on UK goods prices and risk driving up inflation. Ms Reeves refused to say whether the UK would retaliate if Mr Trump went ahead with the tariff plans, but sent a warning to the incoming Republican. “We’re not in favour of tariffs, they push up prices for consumers in Britain and the United States... tariffs push up prices, and we’ll make the case for free and open trade,” she said.

But, amid anger at the chancellor over her decision to impose inheritance tax on farmers in the Budget, she stressed that she would protect British farming. “We’re not going to allow British farmers to be undercut by different rules and regulations,” Ms Reeves said. A key sticking point in free-trade talks between the UK and US is the issue of chlorinated chicken and hormone-fed beef, both of which are practices associated with factory farms in America.