Rachel Reeves has hinted that the UK could lower tariffs on US car imports in a bid to strike a trade deal with Donald Trump. The Chancellor has travelled to the US capital for the International Monetary Fund (IMF)’s spring meetings of G7 and G20 finance ministers.
She is also expected to meet US Treasury secretary Scott Bessent on Friday in an attempt to make progress on negotiations for an economic agreement aimed at mitigating the impact of tariffs unveiled by the US president earlier this month. The UK was placed in the lowest tier when Mr Trump unveiled his global levies, facing a 10% tax on all goods except cars, steel and aluminium, which attract a 25% charge.
A document circulated among US business groups and unions seeking views on a potential deal with Britain, focused on slashing UK tariffs on US cars to 2.5% from their current 10%.
Ms Reeves suggested she was open to this to secure a wider trade deal.
She told the BBC that UK negotiators are working “flat out” to get an agreement that is in the country’s national interest.
She added: “We are willing to reduce trade barriers in the UK, those trade barriers that do exist. And we want to build on the relationship that we have.”
Ms Reeves insisted that the UK was “not going to rush into a deal”.
But she said the Government was “confident that working with our partners in the US we can get a better trading relationship and build on the substantial trade that already exists between our two great countries”.
She added: “We want to get the right deal for Britain, to better support our industry, our jobs and consumers.”
