The chancellor has ruled out lowering the UK’s standards on food imports for beef and chicken to get a deal over the line
Rachel Reeves has said she is “confident” the government will strike a trade deal with the US as she prepares for a meeting with her counterpart Scott Bessent on Friday.
The chancellor, who is in Washington for the spring meetings hosted by the International Monetary Fund, said the UK was sensitive to concerns from the White House about other countries running big trade surpluses with the US — a worry that has led President Trump to hit more than 100 countries with tariffs on their exports.
Reeves told Newsmax, a US TV station: “We don’t always agree with the policy prescriptions and we’re seeking a deal that reduces the trade barriers between our countries. But I am confident that a deal can be done, that our strong relationship — when it comes to defence, when it comes to security and when it comes to the economy and prosperity — means that we can strike a deal.”
The chancellor has ruled out lowering the UK’s standards on food imports for beef and chicken to get a deal over the line, but the government is considering lowering tariffs on imported American cars from the current 10 per cent.
The Trump administration this month announced a 90-day pause on sweeping tariffs on the rest of the world but has pressed ahead with a 145 per cent levy on Chinese goods. UK exports to the US are subject to a 10 per cent tariff, which rises to 25 per cent on steel and cars.
The White House has sent out a memo to American companies asking for their demands from a UK-US trade deal, which include lowering food standards for products like chlorinated chicken and hormone-treated beef. The administration also wanted the UK to drop its tariffs on American cars to as low as 2.5 per cent.
Reeves told reporters on Wednesday that the UK would not “rush” into a deal to avoid tariffs. “This government believes in free and also in fair trade. We are willing to reduce the trade barriers that do exist in the UK and we want to build on the relationship we have. Beyond tariffs, there is more our two countries can do on a technology partnership, national security, and defence.
“A million Americans work for British firms. Our economies are closely intertwined, which is why I believe that there is a deal to be done between the UK and the US.” Reeves told Newsmax the UK was committed to raising its defence spending target to hit 2.7 per cent of GDP by 2027.
“We do need to do more to ensure the interoperability of defence spending and equipment in Europe so that we can work together to better defend our continent against aggression,” Reeves said. “I’m working with other finance ministers to make sure that we are stepping up to provide the funding and also getting value for money for that funding.”
Reeves said on Thursday she shared some of Trump’s concerns about imbalances in the world economy. But she said she was worried about China’s exporting power and how it has hit workers in the United States, Britain and beyond.
“Where the US does have a point is that there are substantial imbalances in the global economy, with some countries running large persistent surpluses and others large persistent deficits,” Reeves said in a panel discussion.
“It does matter where things are made and who makes them, and we can’t be agnostic or naive about that,” she said. Reeves is due to meet US Treasury Secretary Scott Bessent on Friday. High on the agenda will be a possible trade deal which Britain hopes will reduce the hit from Trump’s import tariffs to its exporters of goods including cars and steel.
Reeves said earlier on Friday she was hopeful an agreement with Britain’s single-biggest export market would be reached.
“I am confident that a deal can be done, that our strong relationship – when it comes to defence, when it comes to security and when it comes to the economy and prosperity – means that we can strike a deal,” she told US television outlet Newsmax, which is close to the Trump administration. Reeves also stressed Britain’s commitment to increase defence spending, touching on another policy priority for Trump.
On Wednesday, Reeves said Britain would not rush to secure a deal with Washington and ruled out making concessions on food standards.
The Wall Street Journal reported on Tuesday that the US wanted Britain to reduce levies and other non-tariff barriers on a variety of goods including a relaxation of rules on US agricultural imports, such as beef.
Britain also wants to lower post-Brexit trade barriers with the European Union, a prospect welcomed on Thursday by IMF chief Kristalina Georgieva, who was speaking alongside Reeves.
