Chancellor vows to ‘defend British interests’ ahead of meetings in Washington

Chancellor Rachel Reeves has pledged to “defend Britain’s interests” as she prepares to meet fellow finance ministers in Washington and push for a US trade deal.

Ms Reeves will spend three days in the US capital for the International Monetary Fund (IMF)’s spring meetings, which bring together finance ministers and business leaders from across the G7 and G20.

While she champions Britain as a destination for investment, she will also hold her first face-to-face meeting with American counterpart Scott Bessant for talks on an economic deal between the US and UK.

Urgency

Securing such a deal acquired a new sense of urgency earlier this month when Donald Trump announced sweeping tariffs on imports from the rest of the world.

These included 10% levies on all UK goods – then the lowest level imposed on any country – along with 25% tariffs on steel and cars.

While ministers have said talks on a deal remain ongoing, figures in the Trump administration have cast doubt on their prospect of success.

Although Mr Trump rowed back from his initial announcement, instead instituting 10% tariffs on all countries except China, his senior economic adviser Kevin Hassett has suggested this is a “baseline” which would require an “extraordinary deal” for the president to go below.

Mr Trump himself has said he is in “no rush” to negotiate exceptions to the tariff regime due to the revenues he claimed the charges were generating.

‘New era’

Ahead of her visit to Washington, Ms Reeves said: “The world has changed and we are in a new era of global trade. I am in no doubt that the imposition of tariffs will have a profound impact on the global economy and the economy at home.

“This changing world is unsettling for families who are worried about the cost of living and businesses concerned about what tariffs will means for them. But our task as a Government is not to be knocked off course or to take rash action which risks undermining people’s security.

“Instead, we must rise to meet the moment and I will always act to defend British interests as part of our plan for change.

“We need a world economy that provides stability and fairness for businesses wanting to invest, and trade, more trade and global partnerships between nations with shared interests, and security for working people who want to get on with their lives.”

As well as seeking to make progress on a US deal, Ms Reeves is also expected to discuss improving trading relations with other nations – something she has previously said the Government is keen to do.

Earlier in April, she hosted India’s finance minister for talks on a potential free trade agreement and trade is expected to feature heavily at a UK-EU summit in May.