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On Friday, UK Chancellor Rachel Reeves engaged in her inaugural formal discussion with US Treasury Secretary Scott Bessent. According to British officials, both finance ministers concurred that there exists a “landing zone” for a bilateral trade agreement.
Reeves has expressed openness to reducing Britain’s tariffs on imports of American-made automobiles, as well as agricultural and seafood goods, while attempting to convince the Trump administration to lower its duties on UK exports.
Within the Starmer government, Bessent is perceived as relatively moderate regarding tariffs. However, it is acknowledged that trade decisions are ultimately made within the Oval Office. Currently, the US has imposed a 10% baseline tariff on UK exports and a 25% duty on cars and steel.
According to UK officials, Reeves, who had not previously met Bessent before her visit to Washington this week, had a “good discussion” with her US counterpart.
An individual briefed on the discussions stated that “both feel there is a landing zone for a trade deal, but we’re not there yet. The discussion has become more intense, so that’s positive. Discussion will continue.”
The US Treasury did not immediately respond to a request for comment.
During Reeves’ visit to Washington for the spring meetings of the World Bank and IMF, she received praise from some of the world’s financial leaders for her dedication to free trade and supply-side reforms. Kristalina Georgieva, the IMF Managing Director, remarked on Reeves tackling tough issues and her impressive efforts for spending reprioritization and regulatory improvements.
Domestically, Reeves enjoys less popularity, with recent opinion polls indicating a further decline in her approval ratings. A YouGov poll revealed that only 14% of survey participants had a favorable view of the chancellor, while 62% held a negative opinion, resulting in Reeves’ lowest rating to date.
This week, Reeves has worked to strengthen relations with the Trump administration by indicating that some of its concerns about the global trading system are valid. During an event at the British embassy in Washington, Reeves addressed the US concerns regarding excessive trade imbalances, acknowledging challenges posed by China’s economic rise.
At the event, hosted by Britain’s ambassador to the US, Lord Peter Mandelson, Reeves acknowledged the “very real” challenges associated with global trade imbalances mentioned by Donald Trump’s administration, advocating for their resolution. She further noted that these trade imbalances were not always linked with “transparent policies.”
Nevertheless, Reeves emphasized in her Washington meetings that the UK remains committed to multilateral dialogue and institutions over tariffs, stressing the undesirability of trade wars.