Rachel Reeves says Britain will not be “buffeted around” by American threats to levy fresh tariffs as part of its pursuit of Greenland.
Speaking to Sky News in Davos ahead of Donald Trump’s arrival at the World Economic Forum, the chancellor said her policies and approach in Davos would defend the British national interest.
“Britain is not here to be buffeted around,” she said.
“We’ve got an economic plan, and it is the right one for our country. If other countries want to increase trade barriers, that is their choice, but we are determined to bring trade barriers down.”
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Ms Reeves pointed to the trade and co-operation agreement struck with the US last year as evidence that the UK can do deals with the Trump administration, and defended the prime minister’s decision not to attend the Davos meeting.
“At the moment, no tariffs have been imposed and I think the right approach and the approach that our prime minister, Keir Starmer, has taken over the last year or so, is to try and de-escalate and get the best deal for Britain,” she added.
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“We got the best deal, the first trade deal with the US last year. And I’m confident that we will continue to get a good deal for Britain, and around the world.”
Britain at Davos
The chancellor is leading a delegation of ministers and businesses in Davos and claimed £1.5bn of fresh inward investment has been secured here.
“I’ve been with businesses already this morning here in Davos, British businesses and global investors who are excited about the opportunities in Britain, whether that is in AI or technology, financial services or clean energy. I’m really excited about those opportunities.”
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Reaction to price rises
She also defended measures to bring down inflation after a higher than expected increase in CPI in December to 3.4%.
“Inflation was expected this month to increase slightly, that was the Bank of England forecast… it is also clear that they expect inflation to return to the 2% target by late spring, early summer.
“That continues to be our expectation because of the measures that I took in my budget to take £150 off energy bills, as well as freezing rail fares and prescription charges.”
