Chancellor Rachel Reeves is set to conclude her trip to Washington with a high-stakes meeting with her US counterpart, Treasury Secretary Scott Bessent, in a bid to make headway on a potential UK-US trade deal.
The discussions, scheduled for Friday, follow a week of intensive diplomatic engagements at the International Monetary Fund’s (IMF) spring meetings, where Reeves met with several leading global finance ministers. With trade tensions mounting and markets unsettled, the Chancellor’s talks with Bessent are seen as pivotal for stabilising Britain’s economic prospects amid renewed protectionism from Washington.
The UK Government is eager to mitigate the impact of sweeping tariffs introduced by US President Donald Trump at the start of April. The measures include a blanket 10% tariff on all British exports to the United States, alongside a punishing 25% levy on cars, steel, and aluminium — a move that sent shockwaves through global markets and reignited fears of a broader economic slowdown.
Speaking to the BBC ahead of Friday’s talks, Reeves acknowledged the challenges presented by the tariffs but struck a conciliatory tone. “We’re all grappling with this issue of tariffs, but I think that there is an understanding why President Trump wants to address some of the global imbalances there are in the system,” she said.
Despite the difficult negotiating environment, Reeves has expressed optimism, stating that “a deal can be done.” However, she faces a delicate balancing act, with the US reportedly viewing the 10% tariff as a non-negotiable baseline. Nevertheless, Reeves has made it clear that the UK will not compromise on key issues, ruling out concessions on food standards — a long-standing US request aimed at opening the door to American agricultural imports — and rejecting calls to amend online safety legislation.
“There are red lines we won’t cross,” a source close to the Chancellor said. “The integrity of British food standards and the protection of online freedoms are not up for negotiation.”
Nonetheless, there remains scope for compromise. The Chancellor has hinted at the possibility of a tariff exchange that could see duties reduced on US-made cars in return for lower levies on British-manufactured vehicles entering the American market. While she has stopped short of confirming such a trade-off, Reeves did not rule it out when questioned on Wednesday.
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During her Washington visit, Reeves has taken the opportunity to champion the importance of free and fair trade. Speaking at a panel discussion on Thursday evening, she said: “We must work to reduce both tariff and non-tariff barriers. But we must also recognise that developed economies can no longer afford to be agnostic or naive about where goods are produced. Resilience and security matter more now than they have for a very long time.”
Her remarks struck a chord with IMF managing director Kristalina Georgieva, who offered a glowing appraisal of the Chancellor’s performance. “She is tackling very tough issues,” Georgieva said. “Getting reprioritisation of spending, rationalising the regulatory environment, and taking on the battle to get it done — it’s really impressive.”
Despite these plaudits, Reeves has admitted that talks among the G20 finance leaders have not been easy. “Obviously there are strains,” she told the BBC. “We are all following what’s happening in our domestic bond markets and our equity markets. And we all know that uncertainty is bad for investment in the UK economy.”
As the Chancellor prepares for her final day in Washington, all eyes will be on the outcome of her meeting with Secretary Bessent. With tensions high and economic stakes even higher, the talks could prove crucial in defining Britain’s future trading relationship with its largest non-EU partner.
