Reeves calls for global free trade fightback to protect UK economy

New measures to help tariff-hit firms | Ambitious plan to foster closer ties to EU

- Toby Helm, Phillip Inman & James Tapper

The chancellor, Rachel Reeves, today sets the case for far-reaching changes to global trade and economic agreements as she admits that Donald Trump's tariffs will have a "profound" effect on the UK and world economies that require a strong international response.

In her first significant intervention since the US president caused chaos on global markets by announcing huge levies on imports to the US, Reeves says in a column for the Observer that she is "under no illusion about the difficulties that lie ahead".

While not directly criticising Trump or his policies, Reeves is clear the effects will be economically damaging and says she is determined to act to ease the understandable insecurity about the cost of living felt by British families.

Reeves makes clear she will argue at a meeting of the International Monetary Fund this month for a new "more balanced global economic and trading system" that "recognises the benefits of free trade" over the kind of nakedly protectionist strategies : employed by Trump in recent weeks.

While Reeves says the UK will continue to push for a good bilateral economic deal with the US, she also says it will be her aim to achieve "an ambitious new relationship with the EU" as well as a trade deal with India.

Rejecting the ideas of protectionism - now being aggressively promoted by Trump as his core economic policy and backing the free trade alternative, she adds: "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."