Britain has said it will maintain a "pragmatic relationship" with China on trade, resisting pressure from the United States to erect fresh barriers against Chinese goods. Chief Secretary to the Treasury Emma Reynolds made the comments during the G20 finance leaders' meeting in North Carolina, distinguishing China from adversarial states such as Iran and Russia, which face UK sanctions and embargoes. The stance highlights a divergence between London and Washington on how to respond to global trade imbalances linked to China's manufacturing dominance.

Reynolds said the UK would continue to cooperate with China where interests align while challenging it on areas of disagreement, adding that Britain generally favours free trade over protectionism. This puts her at odds with US Treasury Secretary Scott Bessent, who is urging G20 counterparts to adopt tariff measures similar to those imposed by the Trump administration to shield jobs and manufacturing from a flood of Chinese imports. Critics, including the Tax Foundation think tank, note that US tariffs introduced through 2025 have already pushed up retail prices for imported goods by roughly 7% compared with pre-tariff trends.