Davos (Switzerland) (AFP) – Britain will make the case to US President Donald Trump that Scotch whisky and other goods should be spared from any tariffs by the new administration, UK finance minister Rachel Reeves said Thursday. During Trump’s first term, his tariffs in 2019 against the European Union — which then included Britain — also targeted the UK’s whisky industry. Now outside the bloc, Reeves said Britain would strive to avoid a similar situation.
“I know that President Trump is very proud of his Scottish roots and Scotch whisky is obviously a really important part of the Scottish economy. And so we’ll make that case very strongly,” Reeves told AFP in an interview at the World Economic Forum. Rankled by trade gaps not in the United States’ favour, Trump on the campaign trail last year threatened to introduce blanket customs duties, which could include Britain.
“I recognise President Trump’s concern about countries that run large and persistent surpluses with the US. But the UK is not one of those countries,” Reeves said at the forum in Davos, Switzerland. “We’re not part of the problem that President Trump and the new administration are trying to address and we’ll make that case,” she said. Reeves was hopeful that trade ties between London and Washington could be even better than during his first presidential mandate.
Asked if there would be opportunities to increase trade again, she said: “Trade between our two countries and investment flows between our countries increased. I’ve no reason to believe that that can’t happen again in a way that works for both of our economies.” The two countries’ economies were “closely intertwined,” said Reeves, whose formal title is chancellor of the exchequer, noting that “a million Brits work for American firms, a million Americans work for British firms.”
Determined to kickstart economy, Reeves has had a bumpy few weeks. She faced a slump in the pound this month and a temporary surge in yields on UK gilts, or bonds, as markets reacted to a struggling UK economy amid a global increase in bond rates. The minister said Britain was “not immune to those global fluctuations” but vowed “the number one mission of this new Labour government…is to grow the economy.”
“We will do that by removing the barriers that are stopping businesses from investing in the UK. And that’s what my focus is. And I’m here in Davos to encourage global investors and businesses to take another look at Britain,” she said.
© 2024 AFP
