UK Chancellor Rachel Reeves is in Washington for the IMF spring meetings and is scheduled to meet with US Treasury Secretary Scott Bessent to discuss a potential UK-US economic deal. The aim is to mitigate the impact of tariffs imposed by the US President Donald Trump earlier this month.
The UK faces a 10% levy on most goods and a 25% charge on steel and aluminum. Ministers hope to reduce this rate, with Reeves stating the US administration is "keen to do a deal with the UK".
The discussions aim to reduce tariffs and non-tariff barriers on both sides. Reeves also envisions a "technology partnership" and strengthened security cooperation beyond tariffs.
However, disagreements persist regarding agricultural imports and the Online Safety Act. Reeves has stated that the UK won't compromise on food standards or dilute the Online Safety Act.
The UK is also addressing concerns about cheap imports rerouted from the US. The government plans to strengthen the Trade Remedies Authority and review rules on low-value imports to protect British retailers.
The outcome of these discussions will significantly impact trade relations and economic cooperation between the UK and the US. It will also set a precedent for future trade agreements.