Rachel Reeves 'resolved' to get 'best deal possible' with US as Labour handed growth boost

Kevin Hassett, a senior economic adviser to US President Donald Trump, suggested the blanket 10 per cent tariff rate most countries now face was likely to be a “baseline”, and anything below this would be “extraordinary”.

When the UK was originally faced with the 10 per cent rate on Mr Trump’s so-called “liberation day”, it was seen as favourable compared to others like the EU, which faced a 20% tariff.

A snap announcement of a 90-day pause on reciprocal tariffs means traders importing to America from across the world now face the 10 per cent rate – apart from China, which has been singled out for massive, prohibitive levies.

In the latest development of an emerging trade war, Beijing hiked tariffs on American goods to 125 per cent on Friday to match those imposed by Washington.

The news came as Britain’s economy picked up faster than expected in February, in a boost ahead of an expected slump due the US and China’s tariffs.

The Office for National Statistics said yesterday that gross domestic product (GDP) grew by 0.5 per cent, surprising economists who had forecast just 0.1 per cent growth.

It also marks a significant monthly improvement after no growth in January, the ONS added, after revising a previous estimate of a 0.1 per cent fall for the month.

Ms Reeves said: “These growth figures are an encouraging sign, but we are not complacent.

However, she added: “The world has changed and we have witnessed that change in recent weeks.

“I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them.

“This Government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest.”

The British public’s perception of the economy remains overwhelmingly negative.

After the spring statement, YouGov found that more than three-quarters of Britons see the economy as being in a bad state at the moment, with just 4 per cent describing it as good.

And 70 per cent of respondents thought the Government was doing a bad job with the public finances.

Deputy Prime Minister Angela Rayner told The Yorkshire Post that the local growth plans, that she is developing with the region’s metro mayors, will help spread economic prosperity out of London and the South East.

In West Yorkshire, Ms Rayner sees the mass transit system as key, and in South Yorkshire she is backing the reopening of Doncaster Sheffield Airport.

“The people with skin in the game critical to delivering that change, and that's why the devolution agenda, with those local growth plans, working with local leaders, is so critical for our overarching growth strategy,” she said.

“This is how we're going to pay for our public services and get us out of the doom loop that the Tories had us in for over a decade.”