Labour MPs are urging the government to prioritise rebuilding trade relations with the European Union after a senior adviser to Donald Trump dismissed prospects of significant tariff reductions for the UK. The call comes amid growing frustration over stalled negotiations with Washington and concerns about over-reliance on uncertain transatlantic trade prospects.
The push follows comments from Kevin Hassett, a key economic adviser to Trump, who said that any US trade deal offering Britain terms better than the current 10% baseline tariff would need to be “extraordinary.” While the Trump administration granted temporary relief this week by reducing tariffs on most countries to 10%, UK steel, aluminium and car exports still face punishing 25% duties.
Shadow Chancellor Rachel Reeves maintained the government continues to engage with US counterparts but stressed the importance of diversifying trade partnerships. “We also want to improve trading relations with other countries around the world,” Reeves said, highlighting recent talks with India and an upcoming EU summit in May as critical opportunities.
Labour figures argue that strengthening ties with the UK’s nearest trading partner offers a more reliable path to economic growth than protracted negotiations with an increasingly protectionist US administration. The government’s current strategy includes pursuing a free trade agreement with India reportedly 90% complete and building economic links with China, as evidenced by Trade Minister Douglas Alexander’s recent visit to Beijing.
However, critics contend these efforts risk neglecting what should be the UK’s primary trade priority: its relationship with Europe. With Trump’s “America First” policies creating ongoing uncertainty, pressure is mounting on ministers to secure more stable trading arrangements closer to home.
The debate reflects broader questions about Britain’s post-Brexit economic strategy, with Labour positioning itself as advocating for a more pragmatic approach focused on immediate European opportunities rather than uncertain global deals. As transatlantic trade talks continue to disappoint, calls are growing for the government to rebalance its approach and prioritise what many see as the UK’s most important economic relationship.
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