In a brief statement delivered to the House of Commons, the British Labour Government responded to the commercial crisis initiated last week by U.S. President Donald Trump. Trump had imposed a 10% tariff on the United Kingdom, alongside higher tariffs on several other countries, including China and Southeast Asia.
Minister Rachel Reeves revealed she has been in contact with countries such as Spain, Canada, Australia, the Republic of Ireland, France, and the European Commission, with plans to hold discussions with Indian representatives on Wednesday.
Amid a significant decline in global stock markets, Reeves mentioned her conversation with the Governor of the Bank of England, Andrew Bailey, who reassured her that “markets are functioning effectively” and the British banking system remains resilient.
“The U.S. decision to impose tariffs has had, and will continue to have, tremendous implications for the global economy. These implications are evident in recent market reactions worldwide, closely monitored by financial authorities,” she stated.
Additionally, she informed the lower house that Keir Starmer’s government is working on securing a trade agreement with India.
“We will continue these discussions earnestly. Tomorrow, I will meet with the Indian government as part of the economic and financial dialogue between our nations, as we strive to finalize a new trade deal,” she noted.
Reeves acknowledged the potential “profound” impact of U.S. tariffs and noted that a trade war benefits no one.
“This Government understands clearly that our response to global changes cannot be passive. Instead, we must act decisively and make the correct decisions in our national interest,” she asserted.
Regarding the economic agreement currently being negotiated between London and Washington, the minister emphasized the necessity of pragmatism to secure a deal benefiting the UK’s national interest.
“I am aware that the challenges facing the global economy and their potential impact could be substantial. As a government, we must rise to this challenge to ensure workers’ security,” she declared.
The London Stock Exchange slightly recovered today, opening the session with a 1.2% rise after closing the previous day with a 4.38% drop.
By around 1:00 PM in Lisbon, the London Stock Exchange had enhanced its gains, rising by 2.63%.
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