Rachel Reeves has told families worried about Donald Trump’s economic wrecking ball policies: “We have your backs.”
The Chancellor vowed to act “decisively” as she refused to rule out retaliating to US tariffs. Updating MPs on the unfolding crisis, she admitted the President’s actions will have “huge implications” across the world.
Ms Reeves said: “I know that this is an anxious time for families are worried about the cost of living. We have your backs.
“British businesses who are worried about what a changing world will mean for them. We have your backs too. This Government is clear eyed that our response to global change cannot be to watch and wait, but instead to act decisively to take the right decisions.”
Ms Reeves said a trade war is “in nobody’s interests”, but went on to warn: “We have been clear nothing is off the table. It is why we will continue to back British businesses during these uncertain times, particularly those industries that are most affected as we rebuild our industrial base here in Britain.”
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AFP via Getty Images)
The Chancellor told MPs she had spoken to the Governor of the Bank of England this morning, and been told that British markets are “functioning effectively”. She said: “The United States’s decision to impose tariffs has had and will continue to have huge implications for the world economy.”
It comes as polling shows less than half of Brits think the US is an ally – with a majority wanting the Government to strike back. Eye-opening data reveals that just 43% thinks Washington can be relied on – a dramatic fall in the past month. And 15% now view the US as an enemy – up from 8% a month ago.
It comes as the Government grapples with swingeing tariffs which have sparked fears of a worldwide recession. Keir Starmer warned the escalating crisis will have a “profound” impact and said it is not a “passing phase”. But he called for “cool heads” after Trump slapped 25% tariffs on cars and steel and 10% on all other goods.
Polling found that 51% of voters want the UK to strike back – as other governments including China have done – and bring in their own charges for imports. Just 27% would oppose this, data from More in Common UK found.