Chancellor Rachel Reeves has declined to back calls for a "buy British" campaign in response to US tariffs imposed by President Donald Trump, warning it would make the UK too "inward-looking".

The Liberal Democrats had urged the government to launch a nationwide effort encouraging consumers to purchase British-made goods, similar to Canada's response to US tariffs on Canadian imports.

Speaking during Treasury questions, Lib Dem deputy leader and Treasury spokesperson Daisy Cooper asked the government to "commit to a 'buy British' campaign as part of a broader national effort to encourage people to buy British here at home".

Reeves responded: "In terms of buying British, I think everyone will make their own decisions. What we don't want to see is a trade war, with Britain becoming inward-looking, because if every country in the world decided that they only wanted to buy things produced in their country, that is not a good way forward."

The chancellor told MPs that her priority was securing a trade deal with the US that could offset the levies, saying she would "shortly" be meeting with Washington's Treasury Secretary Scott Bessent.

Downing Street reinforced this position, with the prime minister's spokesperson confirming there were no plans to advise people to avoid US products. He said such advice would contradict Britain's stance as an "open, trading nation" and that the government was "not going to tell people where they buy their stuff".

Cooper criticised the government's stance as "an insult to businesses being pushed to the brink by Donald Trump's trade war" and "completely out of touch with the British people who are rallying behind local businesses in their time of need".

Despite rejecting a consumer-focused campaign, the government indicated it is examining ways to increase British procurement within the public sector. The Cabinet Office is reviewing procurement rules to potentially give British firms an advantage in bidding for government contracts.

Reeves sought to reassure anxious families and businesses about economic turbulence following the tariffs, saying: "We have your backs. And British businesses who are worried about what a changing world will mean for them. We have your backs too."

The US has imposed a 10 per cent baseline tariff on all UK products entering America, with additional 25 per cent levies on aluminium, steel and cars, sparking fears of a global trade war.

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