Chancellor Rachel Reeves has met with her American counterpart Scott Bessent as the United Kingdom continues efforts to secure a long-anticipated trade deal with the United States.
The meeting, which took place in Washington on Friday afternoon, comes at a critical moment, with the UK grappling with new tariffs imposed by former President Trump earlier this month. Ms Reeves, posting on X (formerly Twitter) after the talks, said the discussions centred on “reaching an agreement that is in both our national interests.”
The Chancellor’s insistence on a mutually beneficial deal follows rising concerns over potential concessions Britain may be asked to make, such as lowering food standards to allow more American agricultural products into the UK or dropping a controversial tax on major US tech companies.
In an interview with the BBC earlier in the day, Ms Reeves said the Government was working “flat out” to mitigate the impact of the 10% tariffs on British exports introduced by Mr Trump on April 4, alongside sweeping duties on cars, steel, and aluminium. However, she also emphasised that Britain’s relationship with Europe remained paramount. “I understand why there’s so much focus on our trading relationship with the US,” she said, “but actually our trading relationship with Europe is arguably even more important, because they’re our nearest neighbours and trading partners.”
Downing Street appeared to endorse the Chancellor’s position, with a spokesman describing her comments as a “statement of fact that the EU is our largest trading partner.” Number 10 also referenced previous remarks by Prime Minister Sir Keir Starmer, who said it was a “false choice between the EU and the US,” highlighting the Government’s intention to strengthen ties on both sides of the Atlantic.
Ms Reeves’s meeting with Mr Bessent concluded a three-day visit to Washington for the International Monetary Fund’s (IMF) spring meetings, during which she also met with EU Commissioner Valdis Dombrovskis, Canadian Finance Minister François-Philippe Champagne, and Chinese Finance Minister Lan Fo’an. The Chancellor has made it clear that forging deeper global trade links remains a top priority for the Labour Government as it seeks to rebuild Britain’s international influence post-Brexit.
The trip has also seen efforts to “reset” Britain’s frosty relationship with China, which had suffered from years of minimal contact under previous Conservative governments. In addition, Ms Reeves was scheduled to meet Kevin Hassett, senior economic adviser to Mr Trump, following her talks with Mr Bessent.
On tariffs, Ms Reeves told the BBC she “understands what President Trump wants to address,” acknowledging concerns about global trade imbalances. However, while she expressed optimism that “there is a deal to be done” with Washington, she was firm in ruling out several key concessions reportedly sought by the Americans, including weakening UK food standards and altering online safety legislation.
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Speculation remains that a compromise could be found around automotive tariffs, with some suggesting a deal might involve reciprocal cuts on car tariffs between the two countries. Asked about this possibility, Ms Reeves declined to rule it out on Wednesday.
Responding to the developments, Liberal Democrat Deputy Leader Daisy Cooper said: “The Chancellor is absolutely right that our trading relationship with Europe is more important, but the Government’s approach so far shows these are little more than empty words. This Government has bent over backwards to appease Donald Trump but barely lifted a finger to unleash growth by boosting trade with Europe.”
Ms Cooper called on the Government to “get serious” about Europe, suggesting practical measures such as a youth mobility scheme and negotiating a UK-EU customs union to reduce the “red tape” created by Brexit.
As negotiations with the US continue, it is clear that Ms Reeves and the Labour Government will have to carefully balance diplomacy with America while prioritising stability and growth closer to home.
