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UK needs to rebuild trading relationship with EU, BoE boss says

  • The Bank of England Governor Andrew Bailey urged the UK to do everything to rebuild trade with the EU following a new UK-US trade deal on Thursday.
  • This call follows concerns that Brexit decisions have reduced UK-EU trade and that global trade tensions have slowed economic growth and complicated dealmaking.
  • The UK-US deal eliminated planned tariffs, cutting US import taxes on British cars from 27.5% to 10%, and removing a 25% steel tariff, while the UK talks with the EU continue ahead of a May summit.
  • Bailey emphasized the significance of trade agreements, noting that initial US tariff proposals would have lowered UK economic growth by 0.3 percentage points over a three-year period.
  • The Governor said rebuilding UK-EU trade would benefit the economy and inflation, suggesting the UK-US agreement could serve as a positive example globally.
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UK must seek to ‘rebuild’ trade relationship with EU, says Bank governor

In an interview with the BBC, the Bank’s chief suggested that the UK-US trade deal secured on Thursday could set an example globally.

·London, United Kingdom
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BBC News broke the news in United Kingdom on Thursday, May 8, 2025.
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