RACHEL Reeves has warned tit-for-tat tariffs risk slowing down the whole global economy.

The Chancellor said that even if the UK is not directly targeted by trade levies, they would still have a significant impact on us.

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She said. that she didn’t think tariffs “serves anyone well”.

“We will be affected by slowing global trade, by a slower GDP growth and by higher inflation than otherwise would be the case.”

Ms Reeves added: “We don’t want to see tariffs. I will continue to make the case with all my international counterparts for free and open trade.”

While appearing to be critical of the fresh tariffs on Canada, Mexico and China, Ms Reeves tried to avoid angering President Trump.

She said that the US had done more for Ukraine than any other country.

She added that it was right that Europe played a bigger role and now increased defence spending.

It comes after US President Donald Trump imposed tariffs on Canada, Mexico and China this week, with Europe in his sights.

The Chancellor said “I think we’re all very pleased with the way that the meeting between our Prime Minister and President Trump went last week.

“We are searching now for some sort of trade deal, which I think has been mutually beneficial for both our economies.

“I’ve always believed that free trade is good for countries that are exporting as well as countries importing.”

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