(May 25): UK Chancellor of the Exchequer Jeremy Hunt warned Western allies not to “creep back into protectionism”, as the US and European Union (EU) prepare new trade barriers against goods from China.

In the Group of Seven (G7) finance ministers meeting in Stresa, Italy, Hunt said the UK government had done detailed work on the issue, but will “think hard” before erecting trade barriers. The UK can’t deliver new policies until after the election on July 4.

His remarks suggest the UK is more relaxed than the US and EU over China’s trade practices. A draft of the communique from ministers at the lakeside resort of Stresa warned that they will respond to “harmful practices” in global trade, as the US and EU prepare new tariffs on Chinese goods, including electric vehicles (EVs). The UK has not announced an intention to step up trade barriers against China.

“We will take a very balanced view,” Hunt said on Saturday in an interview with Bloomberg Television. “Our general view is that it is really important that the world does not unintentionally creep back into protectionism.”

“Our starting point is that we really think hard before imposing tariffs or trade remedies. But we are still going through the detailed work necessary to come to a decision.”

He said a decision on tariffs on Chinese EVs would be made by whatever government takes office after the election. Hunt’s Conservative government is trailing the Labour opposition in polls.

“A great deal of work to be done inside the UK government, so that we will be ready to make a decision promptly,” Hunt said.

Hunt also said that US proposals to use income from Russian assets for Ukrainian aid had been “well received” in the G7 meeting. 

“We are looking very carefully at the proposal that the US has made about how we can get significant sums to Ukraine,” he said.

“The G7 was absolutely united in support of Ukraine, and it always has been, but I felt that it was stronger than before, and I think that needs to send a very big signal to Putin that we are not going to let him succeed.”