Chancellor Rachel Reeves is positioning the UK as a beacon for investment, arguing that the economic disruption threatened by Donald Trump could present a surprising opportunity for British exporters. The Chancellor and Business Secretary Peter Kyle are delivering this message at the World Economic Forum in Davos, Switzerland.
Davos Pitch: Stability in a Volatile World
On Tuesday 20 January 2026, the UK's top economic ministers began their mission at the global summit. Rachel Reeves is actively promoting Britain as a stable and attractive destination for business and investment against a backdrop of international uncertainty. Her core argument to global financiers and corporate leaders is that in a turbulent geopolitical climate, they should 'choose Britain'.
This promotional drive comes at a sensitive time for transatlantic relations. Former US President Donald Trump, who has returned to office, is threatening to impose significant new tariffs on imports from several European nations. These proposed levies, ranging from 10% to 25%, are reportedly linked to US demands concerning the acquisition of Greenland.
The Greenland Crisis and a 'Lose-Lose' Policy
The so-called 'Greenland crisis' is applying considerable strain to the long-standing UK-US relationship. UK ministers have held what are described as 'frank conversations' with their American counterparts regarding the potential economic fallout.
Analysts warn that if enacted, Trump's tariff policy could negatively impact Britain's Gross Domestic Product (GDP). Despite this, the UK government is seeking a pragmatic silver lining. Business Secretary Peter Kyle acknowledged that the Trump administration's approach is fundamentally a 'lose-lose' policy'. However, he suggested the increasing 'normalisation' of such trade disruption might open doors for agile British businesses to fill gaps in the market.
Turning Global Tension into National Advantage
While Prime Minister Keir Starmer has emphasised that maintaining strong relations with the United States remains firmly 'in our national interest', the Chancellor's team is simultaneously exploring how to mitigate risks and capitalise on potential advantages.
The UK strategy, therefore, operates on a dual track: managing diplomatic relations with a key ally while proactively marketing the nation's economic resilience to the rest of the world. The message from Davos is clear: as other nations face potential trade barriers with the US, the UK's stable environment could make it the perfect alternative base for companies seeking reliable access to global markets.
The coming weeks will test whether this optimistic reframing of a diplomatic challenge can translate into tangible investment and export growth for the United Kingdom.
