UK Chancellor of the Exchequer, Rachel Reeves, said: “Mr Speaker, the United States’ decision to impose tariffs has had – and will continue to have – huge implications for the world economy.

“These implications have been reflected in the reaction we have seen in global markets over recent days, which the financial authorities have, of course, been closely monitoring. I spoke to the Governor of the Bank of England, who has confirmed that markets are functioning effectively and that our banking system is resilient.

“I know too that this is an anxious time for families who are worried about the cost of living. We have your backs.

“And 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 that are in our national interest, protect working people. All of the decisions that we make as a Government will be underpinned by the stability of our non-negotiable fiscal rules.

“Mr Speaker, a trade war is in nobody’s interest. It is why we must remain pragmatic, cool headed, and pursue the best deal with the United States that is in our national interest.

“This remains our priority - and this was part of the discussions that I had with US Treasury Secretary Scott Bessent last week. But we have been clear that 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. We showed that backing yesterday when the Prime Minister and I announced new measures to give British car-makers certainty, stability, and to support them on the transition to electric vehicles.

“We have put forward plans to support our life sciences sector by cutting back the time it will take to set up clinical trials in the UK. It is why we are working with our international allies to reduce the barriers to trade right across the world.

Over recent days I have held discussions with my counterparts in Canada, Australia, Ireland, France, Spain, and with the European Commission. We will pursue these talks in earnest.

“I will be holding talks with the Indian Government as part of our two nations’ Economic and Financial Dialogue as we seek to secure a new trade deal with India. And finally, we must go further and faster in our mission to kickstart economic growth.

“I know that the challenges facing the global economy - and the potential impact - could be profound.

“And as a Government we must step up to that challenge to deliver security for working people. Through our Plan for Change that is underpinned by stability, reform and investment.

  • Prioritising the builders, not the blockers
  • Reforming our public services, not defending the status quo.
  • Investing in our long-term infrastructure, not cutting it for the short-term.
  • Security for working people.
  • Renewal for Britain.
  • That is our focus.

“And what, Mr Speaker, is what this Government will deliver.”