UK chancellor warns Western allies against creep back to protectionism
(May 25): UK Chancellor of the Exchequer Jeremy Hunt cautioned Western allies not to regress into protectionism amid looming trade barriers between the US, European Union, and China. At the Group of Seven (G7) finance ministers meeting in Stresa, Italy, Hunt emphasized the importance of not unintentionally resorting to protectionist measures, stating that the UK government is evaluating the situation but will exercise prudence before implementing any trade barriers. The UK is taking a more measured stance compared to the US and EU regarding China’s trade practices, with no immediate plans to escalate trade restrictions.
Hunt’s statements align with a draft communique from G7 ministers highlighting a commitment to addressing harmful practices in global trade, particularly in response to proposed tariffs by the US and EU targeting Chinese goods, notably electric vehicles. While the UK has refrained from indicating a shift toward stricter trade regulations against China, Hunt emphasized the need for a balanced approach in decision-making processes.
Regarding US propositions to allocate Russian asset income for Ukrainian aid, Hunt expressed support for the initiative, emphasizing the unity of the G7 in backing Ukraine. Noting a heightened resolve within the G7, Hunt conveyed a strong message to Russian President Putin that international allies stand firm against any attempts to undermine Ukrainian sovereignty.
As the UK awaits the outcome of its upcoming election on July 4, decisions on potential tariffs or trade actions will be deferred to the new government. Hunt reiterated the need for thorough evaluation and readiness to make informed choices based on detailed assessments. The UK government is actively engaging in internal discussions to ensure preparedness for prompt decision-making following the election results.
With a global audience in mind, Hunt’s remarks underscore the significance of maintaining open, fair, and mutually beneficial trade relationships while showcasing support for international cooperation in addressing geopolitical challenges. The UK’s deliberate approach to trade policy reflects a commitment to navigating complex economic landscapes with prudence and strategic foresight.
