Rebecca Evans: ‘Trade deals positive despite global economic pressures’
Rebecca Evans: ‘Trade deals positive despite global economic pressures’
If you’ve ever wondered how the Chancellor spends her day when major global trade deals are being finalised and announced – well, wonder no more.
You may be surprised to learn that part of it involves texting the heads of organisations representing businesses to ask their response to Donald Trump’s tariff relief. “We were having immediate responses, literally coming in on text from the Chancellor, asking us what our responses were,” Jonathan Geldart, Director General of the Institute of Directors, told the organisation’s annual Welsh Director of the Year Awards.
Billed as a new trade deal by the UK Government, the agreement aims to reduce tariffs and bolster key British industries, including automotive manufacturing, steel production, and agriculture. By slashing export tariffs on UK-manufactured cars from 27.5% to 10%, the deal is expected to cut costs significantly for manufacturers, potentially saving hundreds of millions of pounds annually. The new tariff rate will apply to a quota of 100,000 vehicles, almost matching the number of cars the UK exported last year.
It is hoped the reduction in tariffs will not only support the automotive sector but could also provide a boost to supply chain businesses connected to manufacturing. With automotive exports being a major contributor to the UK economy, this trade deal is seen as a step towards securing jobs and fostering growth. Industry leaders have cautiously welcomed the agreement, though they emphasise the need for further support in areas like skilled labour and infrastructure.
Also in attendance at the event was the Welsh Government’s Cabinet Secretary for the Economy, Rebecca Evans. “One of our greatest strengths in Wales is how we collaborate, and it is the collaboration between government and business that will be critical in fostering a sustainable and prosperous future for our country,” she told the room, filled with many of the brightest minds in Welsh business.
However, the Cabinet Secretary acknowledged that these are challenging times for businesses, delivering a sobering reminder that the difficulties facing Welsh enterprises are not rooted solely within Wales. “Despite the really positive news we have had this week about trade deals with India and the USA, we continue to face global economic pressures and uncertainty which requires us to constantly adapt, evolve, and work together to create and grasp opportunities.
“The publication of the UK Government’s Industrial Strategy green paper was a moment of great optimism for me. Wales already has significant strengths across the priority sectors it identifies, and with the right investment, we have the ability to rapidly grow in areas including digital and tech, advanced manufacturing, clean energy, and the creative industries where we are already seen as world leaders.”
In his address, Mr. Geldart was even more candid about the position of UK businesses and their relationship with government. “We still have a bit of a lack of confidence in Government,” he said, echoing one of two words emphasised throughout the speech: “confidence” and “resilience.”
Business leaders at the event discussed how resilience in the face of economic and political challenges has become an essential quality for survival. Many pointed out that fostering confidence among business owners can help them make proactive decisions, even in times of uncertainty. Resilience, they argued, is built through continuous innovation and maintaining a forward-thinking approach.
Mr. Geldart continued: “We have more confidence over the things we can control. Our businesses, we know on a day-to-day basis what’s going on, and we feel more in control right now. The more we can bring that controllable feel to bear on what we do, the more confidently we can move forward. So, we’re seeing, as of last week, confidence starting to rise within the business community and among UK leaders.
“[There are] still some difficulties. But we’re getting used to this. We just reflected on the last five years, which will be written into history. We were making history. I remember sitting in meetings on Teams calls with cabinet officers—people were in a terrible state, we were all in a terrible state, not knowing what was going to happen.
“We’ve faced everything in the past five years. We’re still here. We’re resilient. And when people look back on the UK, they’ll see the resilience in British business. That’s not something we should take lightly.
“That resilience, that ability to bounce back, to have a plan and execute it, and to know deep down that we can overcome challenges. When our backs are against the wall, we’re pretty good at persevering. And we’ve shown over the last five years that we can handle nearly anything thrown at us.”
Resilience, although not explicitly mentioned by the Cabinet Secretary, was indirectly highlighted through her focus on sustainability. Rebecca Evans MS said: “The strategic direction set by the Chancellor identifies clean energy, advanced manufacturing, digital technologies, and transport as priority sectors for the National Wealth Fund. Investments will be made across the UK in projects like carbon capture, green hydrogen, gigafactories, green steel, and ports—and I want to ensure as much of that investment as possible comes to Wales.
“Your organisations are not only the engines of our economy but also crucial partners in addressing the pressing challenges of today, from growth and skills to climate and nature emergencies.
“I am delighted that the Welsh Government is presenting the sustainability award today, nearly ten years since Wales passed our pioneering Wellbeing of Future Generations Act. When businesses embrace sustainable practices, they become more resilient, enhance their reputation, and unlock opportunities for innovation. Sustainability is not a barrier to economic growth; it is essential for long-term success.
“We actively encourage and support businesses on this journey through Business Wales, helping incorporate energy efficiency, resource efficiency, and new low-carbon technologies into workspaces and manufacturing facilities.”
As the event concluded, the atmosphere was a blend of cautious optimism and determined resilience. The message was clear: while challenges persist, the ability to adapt, innovate, and collaborate will remain the cornerstone of future success for both Welsh businesses and the broader UK economy.
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