Chancellor Insists UK Economic Plan Will Withstand Trump's Tariff Threats
Chancellor of the Exchequer Rachel Reeves has declared that the United Kingdom will not be "buffeted around" by Donald Trump's tariff threats, as tensions escalate over the US president's efforts to annex Greenland. Speaking at the World Economic Forum in Davos, Switzerland, Ms Reeves defended the UK's economic strategy and its approach to the growing international dispute.
Defending the UK's Economic Strategy
President Trump has threatened to impose a 10% tariff on imports from the UK and other European allies who oppose his attempts to purchase the Danish territory of Greenland. The tariffs are scheduled to take effect from February 1st if his demands are not met. In response, Chancellor Reeves told Sky News: "Britain is not here to be buffeted around. We've got an economic plan, and it is the right one for our country."
She emphasised that the UK's trade deal with the United States, secured last year, should remain intact. "As the US commerce secretary, Howard Lutnick said when I saw him yesterday, he doesn't see any reason why that trade deal should be undone," Ms Reeves stated, expressing confidence in the agreement's durability despite the current geopolitical friction.
Starmer's Cautious Diplomatic Approach
Prime Minister Sir Keir Starmer has adopted a measured stance on the Greenland issue, avoiding the direct confrontational rhetoric employed by some other world leaders at Davos. While not attending the forum himself, his approach has been to stress that sovereignty matters are for Greenland and Denmark to decide, while simultaneously highlighting the importance of the transatlantic relationship.
Ms Reeves defended this strategy, noting: "At the moment, no tariffs have been imposed and I think the right approach and the approach that our Prime Minister, Keir Starmer, has taken, over the last year or so, is to try and de-escalate and get the best deal for Britain." She expressed confidence that this method, combined with the government's economic plan, would "get us through challenging times."
Broader Concerns Over NATO Stability
The dispute has raised significant concerns about the stability of the NATO alliance. Shadow chancellor of the Duchy of Lancaster Alex Burghart described the situation as "the most dangerous moment for Europe since 1945," warning of potential consequences for European security. He told the Press Association: "There's a risk that NATO is going to fall apart. I really hope that doesn't happen. We must be doing everything we can to prevent it from happening."
Burghart further cautioned that a collapse of NATO could lead to Russian victory in Ukraine and create a severe security threat on Europe's borders. He called for an urgent emergency meeting of NATO to address Arctic security issues, including the Greenland situation.
International Reactions and Trump's Position
President Trump's visit to Davos follows a White House press conference where he expressed uncertainty about NATO members' commitment to mutual defence and reiterated his claim that the United States needs Greenland for security purposes. He confirmed his travel plans to Switzerland, stating: "We have a lot of meetings scheduled on Greenland, and I think things are going to work out pretty well."
While the US president has refused to rule out using military force to seize the island, Downing Street has maintained a diplomatic posture. A spokesperson indicated there would be "engagement on all levels" at Davos but declined to speculate about specific discussions with the US delegation.
Government Unity on Diplomatic Strategy
Energy Secretary Ed Miliband supported the Prime Minister's decision not to attend Davos personally, explaining that Sir Keir had "all kinds of other things that he's doing." He praised the Prime Minister's "calm leadership," which he credited with securing the UK's trade deal with the Trump administration, while noting that Sir Keir would clearly state disagreements when necessary, as demonstrated on the Greenland issue.
Mr Miliband added: "I think Keir Starmer's leadership is absolutely right on this and I think at this stage, it's about de-escalation and finding a way through this tricky situation." This unified government position emphasises diplomatic engagement over confrontation, even as tariff threats loom.
As the international community watches developments closely, the UK government maintains that its economic planning and diplomatic approach will protect national interests against external pressures, while working to preserve crucial international alliances and trade relationships.
