Keir Starmer slaps down Rachel Reeves over claim EU trade more important than US deal
Sir Keir Starmer has slapped down Rachel Reeves after she suggested the Government was prioritising EU trade relations over those with the US.
The Chancellor said in Washington that the UK’s trading relationship with Europe was “arguably even more important” than with the US.
Her remarks came ahead of crunch talks in Washington DC with US Treasury Secretary Scott Bessent.
Starmer has insisted for months that a choice between the US and EU is “a false choice” as he attempts to reset Brexit relations while strengthening ties with Donald Trump.
Starmer has moved quickly to counter comments from Reeves suggesting the government prioritises EU trade relations over those with the US
PA
“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 neighbours and trading partners,” she told the BBC.
She added: “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.”
Starmer quickly moved to address any potential diplomatic fallout from the Chancellor’s comments, describing the US as “incredibly important” to the UK.
His official spokesman reinforced this position, stating: “Both are incredibly important to us.”
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The spokesman rejected the notion that Britain must choose between its two major trading partners, despite calls from Trump’s allies for the UK to make precisely such a choice.
The apparent disagreement between the two most senior Government figures comes amid ongoing uncertainty over a potential youth mobility scheme with the EU.
Reeves is working to secure a US trade deal to mitigate the impact of Trump’s tariffs imposed in early April, which include 10 per cent tariffs on all UK exports to the US and 25 per cent levies on cars, steel and aluminium.
The Chancellor has said there is a “deal to be done” with Washington.
She has ruled out concessions on food standards that would allow more American agricultural imports.
Changes to online safety legislation sought by some US politicians have also been rejected.
Reeves is working to secure a US trade deal to mitigate the impact of Trump’s tariffs
REUTERS
A potential deal could involve reciprocal reductions in tariffs on vehicles from both nations.
Reeves noted she has been working closely with European and Canadian counterparts to remove trade barriers, and acknowledged the difficult conversations at recent G20 meetings.
“Obviously, there are strains. We are all following what’s happening in our domestic bond markets, in our equity markets,” the Chancellor said.
She added: “We all know that that uncertainty is bad for investment in the UK economy.”
