Rachel Reeves launches £20bn support package for thousands as Donald Trump's trade war sparks recession warnings
Thousands of UK businesses are set to receive new financial support as the Government unveils a £20billion export finance package.The new support comes amid warnings that the global economy is facing a period of heightened uncertainty following sweeping US tariffs imposed by Donald Trump.The package will expand the capacity of UK Export Finance (UKEF) to back British exporters, with up to £10bn specifically earmarked for firms impacted "in the short term by the current situation", according to the Treasury.Chancellor Rachel Reeves said: "The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead."Today’s announcement will do just that, with thousands of businesses right across the country set to benefit."The measures come amid growing fears of a global economic downturn, sparked by a new wave of tariffs introduced by Trump. His decision to raise levies on a wide range of goods entering the United States has unsettled markets, sent stock prices tumbling, and sparked warnings of a possible global recession.Chancellor Rachel Reeves said: 'The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead' GB NEWSSince the announcement, the US president has scaled back some of the tariffs. Import charges on most goods have been reduced to a flat 10 per cent, and electronics such as smartphones and laptops — including items from China previously hit with a 145 per cent tariff — have been exempted.However, senior figures close to Trump have said the new 10 per cent tariff will now serve as a "baseline" rate for future trade. One adviser said anything below that would be considered "extraordinary".Despite the changes, UK exporters remain exposed. Reeves acknowledged the scale of the challenge in a weekend column, writing that Trump’s tariffs would have a "profound impact" on both the UK and the global economy.She added: "The Labour party is an internationalist party. We understand the benefits of free and fair trade and collaboration. Now is not the time to turn our backs on the world but to face forward."Donald Trump introduced the tariffs just a few weeks agoREUTERSAs part of the support package, UKEF will be granted more flexibility to provide partial loan guarantees to businesses, helping firms secure access to credit. The British Business Bank’s loan guarantee scheme will also be expanded by £500million to support small businesses.Reeves is expected to continue trade talks with US officials later this month when she attends the International Monetary Fund’s spring meetings in Washington. The Government is still aiming to secure a formal exemption for UK exporters from the new US tariffs."I am resolved to get the best deal possible for the UK," the Chancellor said.But opposition MPs criticised the Government’s handling of the situation. Conservative shadow business secretary Andrew Griffith said Labour had "dithered and delayed" in efforts to secure a US exemption and had "binned the Government’s chief negotiator".Reeves insisted the new support would help protect jobs, stabilise trade and boost long-term growthGETTYHe added: "Now, British manufacturers are paying the price, facing higher costs, disrupted supply chains and uncertainty made worse by the Government’s decision to introduce a jobs tax, and more business regulation."Griffith also pointed to previous Conservative efforts to secure state-level deals with the US, saying: "Under the Conservatives, we laid the groundwork for a US deal with eight state-level agreements and serious progress on a trade deal."Reeves, however, insisted the new support would help protect jobs, stabilise trade and boost long-term growth. She said: "We are going further and faster to boost growth, but we cannot do it alone. Only by working with businesses will we achieve our Plan for Change and put more money into people’s pockets."
