As global economic uncertainty intensifies, the UK government is working to secure a trade deal with the US, led by Chancellor Rachel Reeves’ efforts to address President Trump’s concerns over global imbalances and tariffs.
The UK government is working ‘flat out’ to secure a trade deal with the US, according to Chancellor Rachel Reeves. Ahead of her meeting with US Treasury Secretary Scott Bessent in Washington on Friday, Reeves acknowledged President Trump’s concerns over global imbalances and tariffs.
Rachel Reeves is a British Labour Party politician serving as the Member of Parliament for Leeds West since 2005.
She has also held various shadow cabinet positions, including Shadow Chancellor of the Exchequer from 2020 to 2023.
Reeves has been involved in several key policy areas, such as economic growth, education, and tax reform.
Born on July 18, 1979, she studied at Cambridge University and later worked in the City before entering politics.
Reeves noted that there are similarities between the US and UK governments’ approaches to addressing economic frustration with their respective voters. Both countries have come to power on a wave of discontent with the economy, and both leaders are seeking to address these issues through trade agreements.
Trade agreements are formal pacts between countries that regulate international trade.
They aim to reduce tariffs, quotas, and other trade barriers, promoting free and fair trade.
Key aspects of trade agreements include tariff reduction, non-tariff measures, and dispute settlement mechanisms.
Examples of notable trade agreements include the North American Free Trade Agreement (NAFTA) and the European Union's Common External Tariff (CET).
These agreements have a significant impact on global commerce, influencing economic growth and development.
The chancellor signaled that the UK is open to lowering tariffs on US car imports from 10% to 2.5% as part of a wider deal. This move would follow Trump’s imposition of 25% tariffs on all car imports to the US, including those from the UK.
Reeves emphasized her understanding of President Trump’s concerns about global imbalances and the need for trade agreements to address these issues. She also acknowledged that conversations around trade barriers at G20 meetings this week had been difficult, citing uncertainty in the domestic bond markets and equity markets as a concern for investment in the UK economy.
Donald Trump is a businessman, television personality, and politician who served as the 45th President of the United States from 2017 to 2021.
Born in 1946, Trump graduated from the University of Pennsylvania with a degree in economics.
He gained fame through his reality TV show 'The Apprentice' before entering politics.
As president, Trump implemented policies on tax reform and deregulation, but his tenure was marked by controversy and polarization.
His presidency saw significant changes to US foreign policy, including withdrawal from international agreements.
Despite the focus on talks with the US, Reeves stressed that rebuilding trading relationships with European neighbors is a higher priority. The UK is preparing for an EU summit in May to ‘reset’ its relationship with the bloc, which is seen as crucial for British jobs and consumers.
Reeves’ approach reflects the complexities of trade negotiations and the need for careful balance between competing priorities. As she works to secure a deal with the US, she must also navigate the challenges of rebuilding relationships with European partners and addressing global economic uncertainty.
