The Business Reporter, Oliver Smith, covered Chancellor Rachel Reeves’ upcoming talks with US Treasury Secretary Scott Bessant in Washington regarding President Donald Trump’s tariffs. Reeves highlighted the similarities between the US and UK government’s rise to power due to voter frustrations with the economy. She expressed the government’s dedication to securing a trade deal with the US, indicating a potential decrease in tariffs on US car imports from 10% to 2.5% as part of a broader agreement.
Reeves acknowledged President Trump’s concerns about global imbalances in the tariff system, stating, “We’re all grappling with this issue of tariffs.” Trump had already imposed a 25% tariff on all car imports, including those from the UK. The UK faces a 10% tariff rate and is seeking negotiations with the US administration, along with other countries facing higher levies, some of which are temporarily paused until July. US Vice-President JD Vance expressed optimism about the prospects of a trade deal with the UK.
In addition to engaging with US officials, Reeves collaborated with European and Canadian counterparts to address trade barriers. She emphasized the challenges faced during recent G20 meetings due to market uncertainties affecting the UK economy. Despite focusing on talks with the US, Reeves stressed the significance of strengthening trade relations with the EU, as the UK prepared for a summit in May to “reset” the relationship. She highlighted the importance of rebuilding trading relationships with European neighbors to benefit British jobs and consumers.
Reeves underscored the priority of enhancing trade ties with Europe, citing it as crucial due to geographical proximity and existing partnerships. While meeting with Scott Bessant in Washington, she also engaged with various European finance ministers to emphasize the importance of strengthening relationships with neighboring countries. Reeves emphasized the government’s commitment to prioritizing agreements that would benefit British jobs and consumers in the evolving trade landscape
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