Chancellor sets out British priorities before key meeting with US Treasury Secretary Scott Bessent
Chancellor of the Exchequer Rachel Reeves has said the United States is “keen to do a deal with the UK”, as she prepares for high-level talks in Washington aimed at easing damaging new tariffs imposed by US President Donald Trump.
Ms Reeves is attending the spring meetings of G7 and G20 finance ministers under the auspices of the International Monetary Fund (IMF), but Friday’s meeting with US Treasury Secretary Scott Bessent is expected to be a pivotal moment in efforts to advance a UK-US economic agreement.
The UK Government is seeking to mitigate the impact of Mr Trump’s global tariff regime, announced earlier this month. The new policy placed Britain in the lowest tier of trading partners, subjecting most UK exports to a 10% tariff, and goods such as steel, aluminium, and cars to a 25% charge.
Speaking at a business event in Washington on Wednesday, Ms Reeves said: “What we hear from the US administration is that they are keen to do a deal with the UK, reflecting the closeness of that relationship. There is a shared understanding that a strong UK-US economic partnership benefits both sides.”
While US officials have signalled that the 10% levy represents a “baseline” and are reluctant to lower it for any country, UK ministers remain hopeful that negotiations could yield some movement. Asked whether reducing tariffs below 10% was feasible, Ms Reeves told ITV News: “Let’s see where we get to. Those discussions are ongoing. They’re going well.”
However, she declined to commit to a timetable for securing an agreement, stating: “We’re not going to rush into a deal. It’s more important to get this right than to get it quickly.”
At a World Economic Summit hosted by Semafor, Ms Reeves expressed a desire to see a broader agreement that tackles both tariffs and non-tariff barriers, suggesting opportunities in areas like digital trade and joint technology ventures. “This isn’t just about damage limitation,” she said. “It’s also about the next step – deepening our cooperation in areas like tech and security.”
Yet she was clear that there are red lines the UK will not cross, particularly around British standards. Asked about agricultural imports that may not meet UK food safety rules, the Chancellor said: “We are not going to dilute our food standards – and the US administration respect and understand that.”
Similarly, she rejected the idea of amending the newly enacted Online Safety Act to appease American concerns about freedom of speech, telling Sky News: “The safety of our children online is non-negotiable.” She also dismissed the notion of easing UK road safety standards to allow the import of American SUVs: “We are not going to water down areas of road safety.”
In a related move, the Chancellor announced on Wednesday new measures to protect British retailers from being undercut by cheap goods diverted from the US. The Government will strengthen the Trade Remedies Authority and review low-value import thresholds to guard against unfair competition.
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“There’s a real risk that cheap goods intended for the US will flood the UK market,” Ms Reeves warned. “We’re taking decisive steps to prevent that.”
During her time in Washington, Ms Reeves also met with European counterparts to call for a more strategic approach to defence investment. She announced the formation of a new “defence and economic growth task force”, chaired by herself and Defence Secretary John Healey, and led by the Confederation of British Industry (CBI).
CBI chief Rain Newton-Smith welcomed the initiative, saying it would ensure the Government’s commitment to increasing defence spending translates into “an opportunity not only to enhance the UK’s security capabilities but to drive sustainable economic growth across the nation”.
With the UK positioning itself as a key economic and defence partner on the global stage, the outcome of the Reeves-Bessent meeting could prove a defining moment in shaping Britain’s post-Brexit trading future.
