UK finance minister warns of global economic fallout from US tariffs

UK Finance Minister Rachel Reeves warned that U.S. trade tariffs would have enormous consequences for the global economy, speaking in the House of Commons.

"The decision by the United States to impose tariffs will continue to have significant consequences for the global economy. These consequences have already been seen in the reaction of global markets in recent days, which financial authorities are closely monitoring," she said, as quoted by Russian media, per Caliber.Az.

Reeves emphasized that a "trade war is not in anyone’s interest," but made it clear that London would reserve the right to take retaliatory measures if necessary. "We must maintain pragmatism and a clear head, and make efforts for the best possible deal with the United States. But we have made it clear that we do not rule out anything [as a response]," the Chancellor of the Exchequer remarked. She also stated that she would meet "in the near future" with U.S. Treasury Secretary Scott Bassett. Furthermore, she has conducted telephone discussions with her counterparts from Australia, Spain, Ireland, Canada, and France over the past few days.

Reeves also highlighted that the UK government would continue supporting sectors most affected by the tariffs, including car manufacturers. However, she distanced herself from the campaign led by the Liberal Democrats, which proposed "buying British goods" as a response to the U.S. tariffs. "If every country decided they only wanted to buy things made in their own country, that would not be good," she said. "Our country has gained many benefits from access to global markets."

On April 2, U.S. President Donald Trump announced that customs tariffs would be imposed on products from 185 countries and territories. Russia was not included in the list. For the UK, U.S. tariffs were set at 10%, which Trump referred to as the minimum.

Additionally, starting from April 3, the U.S. administration imposed a 25% customs tariff on all imported cars. UK Business and Trade Secretary Jonathan Reynolds stated that London is exploring various options in response to the actions taken by the U.S. government.

By Tamilla Hasanova