Bloomberg Talks: UK Business Secretary on Trade, EU Relations & London’s Future
Episode Date: January 22, 2026
Host: Bloomberg Radio
Guest: Peter Kyle (UK Business and Trade Secretary)
Episode Overview
This episode features an in-depth interview with Peter Kyle, the UK’s Business and Trade Secretary, live from Davos. The discussion centers around the stability and future of the UK’s trade relationships with the United States and the European Union, the impact of recent diplomatic tensions, and the UK's economic competitiveness. Kyle also rebuts critiques from political opponents about London’s business environment.
Key Discussion Points & Insights
1. Status of UK-US Trade Relationship
[01:17 – 04:09]
- US Tariff Threats: The episode opens with concerns over possible extra US tariffs on the UK and European economies, recently withdrawn following an agreement regarding Greenland.
- Kyle’s Take on Diplomacy:
- Kyle asserts confidence in recent UK and EU diplomacy to avert tariff threats and refocus NATO security.
“That was cool, calm, energetic diplomacy... We got to where we needed to be. Now... we can focus on that and also get back to that key business of talking about trade and improving trade between America, Britain and Europe.”
— Peter Kyle, 01:44
- Kyle asserts confidence in recent UK and EU diplomacy to avert tariff threats and refocus NATO security.
- On ‘Glitches’ in UK-US Trade Deal:
- Progress is ongoing despite concerns; several key wins have recently been secured.
“Since the talk of a glitch or a pause started to emerge, we have secured a deal on beef, for example. So Britain has access to the beef quota for the US from the 1st of January. That saved £66,000 in tariff fees.”
— Peter Kyle, 02:36 - The pharmaceutical deal and a major trade agreement with the US have created substantial opportunities—$300 billion in commercial potential.
- Progress is ongoing despite concerns; several key wins have recently been secured.
- Trust & Special Relationship:
- Despite earlier negative signals from the US (tariffs, tone from US Treasury), Kyle emphasizes the depth of collaboration and mutual benefit between the UK and US in cutting-edge sectors:
“The key thing that's underpinning the... special relationship... is... very strong personal relationships... if it were a Venn diagram, the bit that's in the middle there is really quite considerable.”
— Peter Kyle, 04:09 - Areas of cooperation include quantum, AI, fusion, space, climate and health tech.
- Despite earlier negative signals from the US (tariffs, tone from US Treasury), Kyle emphasizes the depth of collaboration and mutual benefit between the UK and US in cutting-edge sectors:
2. UK-EU Trade Dialogue and Customs Union Speculation
[05:37 – 08:47]
- Customs Union Debate Clarified:
- Addressing speculation, Kyle states the government’s focus is immediate economic growth—not rejoining the Customs Union.
“It is not my intention that we join the Customs Union. My focus is absolutely on short term immediate growth.”
— Peter Kyle, 05:54
- Addressing speculation, Kyle states the government’s focus is immediate economic growth—not rejoining the Customs Union.
- Review of UK-EU Trade Agreement:
- The UK is not open to joining the Customs Union but seeks to improve existing trade measures—particularly those that can enhance growth in the short-term.
“It took Turkey 20 years to join the customs union. It took four years for the UK to leave the Customs Union. And we need to focus on improving measures in the immediate term.”
— Peter Kyle, 07:14
- The UK is not open to joining the Customs Union but seeks to improve existing trade measures—particularly those that can enhance growth in the short-term.
- Practical Steps for Growth:
- Kyle highlights ongoing regulatory efficiencies (£230 million delivered in a few months), the creation of a Global Talent Task Force (with new visa pathways), and a £4 billion scale-up fund for business.
- The UK is seeking shared wins with the EU, especially regarding smoother goods and service flows (notably, Sanitary and Phytosanitary—SPS—agreements).
3. London’s Reputation and Political Counter-Narratives
[08:47 – 11:21]
- Response to Criticism (Nigel Farage):
- Kyle rebuffs claims by Nigel Farage that London is unsafe and business is at risk.
“Nigel Farage never misses the opportunity to go and do down Britain. The fact is that London has one of the lowest crime rates of any comparable city in the world. It is an extraordinarily safe city...”
— Peter Kyle, 09:03 - He touts London’s financial outperformance and continued government investment.
“The London Stock Exchange is outperforming Wall Street by 20%. Just had the best year it's ever had on history, hit record highs.”
- Kyle rebuffs claims by Nigel Farage that London is unsafe and business is at risk.
- Impact of Political Opponents:
- Kyle says these narratives do not make his job harder, instead highlighting a distinction between “stability” provided by the government and “instability” associated with his critics.
“Business craves stability. Nigel Farage, he lives and breathes instability and chaos... what he never does is stick around long enough to actually sort out the mess that he causes wherever he goes.”
— Peter Kyle, 10:24 - The government is focused on delivering a 10-year industrial strategy, providing unique stability in global markets.
- Kyle says these narratives do not make his job harder, instead highlighting a distinction between “stability” provided by the government and “instability” associated with his critics.
Notable Quotes & Timestamps
- On Diplomacy with the US:
“The resolve of the Prime Minister was clear and evident... we got to where we needed to be.”
— Peter Kyle, 01:44 - On Progress Post-Deal:
“That huge gargantuan deal... created $300 billion worth of commercial potential between our two nations.”
— Peter Kyle, 03:51 - On Customs Union:
“It is not my intention that we join the Customs Union. My focus is absolutely on short term immediate growth.”
— Peter Kyle, 05:54 - On Political Critique:
“Nigel Farage... never misses the opportunity to go and do down Britain... London has one of the lowest crime rates of any comparable city in the world.”
— Peter Kyle, 09:03 - On Government vs. Chaos:
“We have a governing party that is governing Britain with a industrial strategy that sets policy for 10 years into the future. 10 year stability in a world which really has a lot of instability in it shows just how attractive Britain is now...”
— Peter Kyle, 10:24
Key Segments & Timestamps
- US-UK Tariff Situation & Diplomatic Response: 01:17–02:28
- Implementation & Wins in UK-US Trade: 02:28–03:51
- Trust Issues & Ongoing Collaboration: 03:51–05:37
- Customs Union & UK-EU Trade Priorities: 05:37–08:47
- Defending London as a Business Destination: 08:47–10:18
- Political Stability vs. Opposition Narratives: 10:18–11:21
Tone and Style
Peter Kyle remains optimistic, pragmatic, and assertive about the UK’s international relationships and economic prospects, blending technocratic detail with spirited rebuttals of critics. The interview is forward-looking, policy-heavy, and keen to distinguish government stability from political noise.
This summary encapsulates the key threads of the episode, with direct quotes and structure for easy navigation and understanding—valuable for both policymakers and the business community.