Chancellor Rachel Reeves has warned that US tariffs will continue to carry “huge implications” for the global economy, but assured MPs that the Bank of England considers the UK’s banking system to be resilient.
Speaking in the House of Commons at the start of Treasury questions, Reeves said the government would support families and businesses through the uncertainty, promising that its decisions would adhere to strict fiscal rules, including a ban on borrowing for day-to-day spending.
Her comments came as financial markets showed early signs of stabilising.
The FTSE 100 was up 2.4% in early afternoon trading, tracking gains in Asia after several days of steep declines.
The UK is seeking an agreement with the US to ease import tariffs of 10% on British goods, 25% on cars, and separate duties on steel and aluminium. New tariffs on European and Japanese goods are due to take effect on Wednesday.