Rachel Reeves suggests that British trade with EU is more important than the US.

The trade relationship of the UK with the EU is demonstrably “more important” than the person who has it with the US, the Chancellor told the BBC.

Rachel Reeves suggested that closer to the EU on the EU was closer to the EU a greater priority, despite her current focus on conversations with the US.

After meeting the American Minister of Finance Scott Bessent on Friday, Reeves tweeted That both the UK and the US want a deal that is “in both national interests”.

Earlier this week she indicated that the UK could lower the rates for the import of American cars from their current 10% to 2.5% as part of a wider deal.

The UK is preparing at a top with the EU in May in an attempt to “reset” the relationship between the two.

“I understand why there is so much focus on our trade relationship with the US, but actually our trade relationship with Europe is demonstrably even more important because they are our closest neighbors and trading partners,” she told the BBC.

“Of course I met Scott Bessent this week while I am in Washington, but this week I also met the French, the German, the Spaniards, the Polish, the Swedish, the Finnish Ministers of Finance – because it is so important that we rebuild those trade relationships with our close neighbors in Europe, and we will do that in a way that is good for that.” “

A Downing Street spokesperson said that the comments of the Chancellor “had been a factual explanation that the EU is our largest trading partner”.

The spokesperson also emphasized comments that Sir Keir Starmer previously made where he had said that it was a “false choice between the EU and the US”.

Reeves said this week that the government works “downright” to conclude a trade agreement with the US.

She said that she wants to see “free and honest” trade and wants to delve into the relationship between the US and the UK in areas such as technology.

Conservative shadow business secretary Andrew Griffith told Sky News that his party would ‘absolutely try’ to prioritize a deal with the US above the EU.

Griffith argued that the UK already had a tariff -free deal for goods with the EU, so the “next best choice if you wanted to grow the economy after the Chancellor had crashed, it would be to get a deal with the US”.

Spokesperson Daisy Cooper Cooper MP of the Liberal Democrat said: “The Chancellor is absolutely right that our trade relationship with Europe is more important, but the government’s approach has so far shows that this is little more than empty words.

“This government has bent back to appease Donald Trump, but has hardly lifted a finger to let go of growth by stimulating trade with Europe.”

As for the situation with the US, Reeves said that she understands as President [Donald] Trump wants to address “with his rates, prior to conversations with her American counterpart in Washington.

Reeves said there were similarities with the way in which both the American and British governments had come the power of the frustration of voters with the economy.

“We are all struggling with this issue of rates, but I think there is a concept why President Trump wants to tackle some of the global imbalances that are in the system,” she said.

Trump has already imposed rates of 25% on all imports of cars to the US, including from the UK.

The VK is also confronted with a broader rate percentage of 10% and wants to negotiate an agreement with the US government, together with dozens of other countries affected with even higher levies – most of which are currently on break until July.

Some American officials have been positive about the prospects of a deal. Last week the American vice-president JD Vance said that there was a “good chance” that a trade agreement with the UK could be reached.

Reeves said that she had also worked closely with European and Canadian counterparts to remove commercial barriers, and that conversations around the table during G20 meetings had been difficult this week.

“Of course there are tensions. We all follow what happens in our domestic bond markets, in our stock markets, and we all know that this uncertainty is bad for investments in the British economy.”

You can watch Faisal’s full interview with Rachel Reeves here.