The United Kingdom’s finance minister said on Wednesday that the country is “not part of the problem” regarding the “persistent” trade deficits that President Donald Trump seeks to address.
Trump has focused on addressing the trade imbalances the U.S. faces with various countries, seeking to reduce deficits that he views as detrimental to the American economy.
“I do understand that President [Donald] Trump is concerned about countries that are running large and persistent surpluses on the trade balance with the U.S. That’s not the case for the U.K.,” the U.K.’s Chancellor Rachel Reeves told CNBC.
“We are not part of the problem here. So we, the U.K., increased trade with President Trump last time he was in office,” she said, speaking to CNBC on the sidelines of the World Economic Forum in Davos, Switzerland.
According to the latest U.K. trade data, in the second quarter of 2024, the U.K. recorded a trade surplus of £4.5 billion ($5.5 billion) with the U.S. in goods.
However, in the second quarter of 2023, the U.K. had a trade deficit in goods with the U.S. of £2.3 billion.
“There is absolutely no reason why our two great nations, with such a strong and special relationship, can’t increase those flows of trade once again,” Reeves commented.
The U.K. finance minister is in Davos this week, working to attract global investment into the British economy.
She said, “we need more investment into the U.K. And so my message to U.S. investors and global investors too is: Britain is open for business, we want your investment.”
