Chancellor Rachel Reeves has confirmed she will hold talks with senior members of the US administration next week as the UK steps up efforts to secure a trade agreement amid sweeping tariffs introduced by President Donald Trump.
In what is seen as a crucial moment for UK-US trade relations, the Government is seeking to shield British industry from the full impact of a new 10% blanket tariff imposed by Washington earlier this month on all imported goods, including a steep 25% duty on car imports. With fears mounting across key UK manufacturing sectors, hopes are high that an agreement may be in sight.
Ms Reeves, speaking in Scunthorpe following a government intervention to safeguard the local steelworks, emphasised the urgency and significance of the negotiations. “We are in active negotiations at the moment with our US counterparts on a whole range of issues concerning the tariffs for steel and aluminium, and the cars which of course are at 25%, as well as the headline tariff rate of 10%,” she said.
She added: “Getting a deal across a whole range of areas is very important for British industry and British jobs, and that is my focus as Chancellor.”
The Chancellor will be in Washington next week for the annual spring meetings of the International Monetary Fund, during which she is also expected to engage directly with US trade officials. “Those conversations with our US counterparts are ongoing,” she told reporters. “The key thing for the British Government is always acting in the UK’s national interest, and any deal that’s able to be secured will always have front-and-centre British national interest.”
According to The Telegraph, White House officials believe an agreement could be reached “within three weeks” — though no official timeline has been publicly confirmed by either side.
The tariffs have already sparked concern among UK exporters, particularly within the automotive, steel and pharmaceuticals sectors. Businesses fear the levies could significantly dent competitiveness and reduce market access, especially at a time when economic growth remains fragile across both sides of the Atlantic.
Adding to the complexity of the situation, former MI6 deputy chief Nigel Inkster issued a stark warning on Thursday, cautioning the Government against entering a trade deal with the US that might sour relations with China.
Speaking on BBC Radio 4’s Today programme, Mr Inkster said: “If it were the case that we had such a deal, I think it would come with strings, and one of those strings would be an expectation that the UK would get with the programme when it came to China.”
He referenced the Huawei 5G controversy as a cautionary tale of geopolitical pressure, and stressed the importance of clearly defining critical national infrastructure. “One of the areas here that worries me quite a lot is the whole pharmaceutical sector,” he said. “China is a critical supplier of many pharmaceutical products. Without them, we would be in trouble.”
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Reports suggest that pharmaceuticals are among the most sensitive topics being discussed during trade talks, with speculation that President Trump may introduce tariffs on medicines, potentially triggering further disruption in the healthcare supply chain.
Asked whether the Chinese government could restrict pharmaceutical exports in retaliation, Mr Inkster said: “It would be an incredibly powerful lever. China has a fairly clear track record of readiness to use economic coercion.”
The UK Government, for its part, remains tight-lipped about any concessions it might make to either the US or China, but insists that national interests and economic security will guide all negotiations.
As the Chancellor prepares for a high-stakes week in Washington, industry leaders and political observers alike will be watching closely for signs of progress — or further complications — in what could prove a pivotal chapter in Britain’s post-Brexit global trade strategy.
