Rachel Reeves has insisted that Donald Trump’s global trade war has made it even more “imperative” for the UK to improve post-Brexit trading relations with the EU. The Chancellor wants Britain to achieve an ambitious economic agenda in EU/UK “reset” talks.

But the government continues to rule out any move to rejoin the EU customs union.

Ms Reeves made the comments ahead of a crucial summit with EU leaders in London on May 19.

Ms Reeves said: “Since Brexit, it has been harder for British firms to export around Europe, particularly smaller firms. Many feel shut out of European markets.

“I feel that in the current environment, there is a greater willingness from countries around the world to look at both tariff and non-tariff barriers that are holding back trade.

“Many of the developments, whether it is Russia’s invasion of Ukraine or the challenges in global trade at the moment, mean that there’s an even greater imperative to improve our trading relationships with Europe.”

Ms Reeves also argued the UK-EU summit would be an opportunity to “refresh our relationship and make it easier for businesses to trade”, with “partners in Europe”.

She insisted she would seek to negotiate a US trade deal in Washington later this month for the IMF global finance ministers meeting.

Referring to Donald Trump's tariff blitz, Ms Reeves said: “No one wants to see a trade war. It’s in no one’s interest.

“Knee-jerk reactions are not going to be good for UK businesses or UK jobs, and so we’re approaching this in a responsible, calm way.”