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UK draws red line on deal with Washington

By JONATHAN POWELL in London | China Daily Global | Updated: 2025-04-25 09:26
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Britain's Chancellor of the Exchequer Rachel Reeves speaks during a discussion at the IMF/World Bank Spring Meetings in Washington, DC, on April 24, 2025. [Photo/Agencies]

The United Kingdom won't "rush into a deal" with United States President Donald Trump over tariffs, but is actively seeking to reduce trade barriers, according to the UK's Chancellor of the Exchequer Rachel Reeves, even as talks intensify over a potential US-UK trade agreement.

The UK is considering cuts to its 10-percent tariff on US vehicles, while pushing back against the 25 percent US levy on British cars and steel exports — in what could mark a breakthrough in post-Brexit trade relations, reported the BBC.

The chancellor is among the finance ministers from around the world gathering in Washington, DC, this week for International Monetary Fund and World Bank meetings, where she aims to negotiate a reduction in Trump's punitive import tariffs.

"I want to see tariff and nontariff barriers reduced between the UK and the US, but also with other countries around the world," Reeves told reporters on Wednesday, acknowledging that "extensive discussions" are underway to secure an economic agreement.

'Discussions continue'

"It's clear the Trump administration is wanting a deal with the UK," she noted, adding that "those discussions continue".

Earlier on Wednesday, the BBC reported a document had been circulating among US business groups revealing that Washington is seeking to lower UK tariffs on US cars from 10 percent to 2.5 percent.

Speaking before her meeting with US Treasury Secretary Scott Bessent, the chancellor said negotiations would take time.

"We're not going to rush a deal. We want to get the right deal that's in our national interest, and those talks are ongoing," Reeves said, according to Reuters.

Asked specifically about her discussions with Bessent, the first time the pair will meet face to face, Reeves said: "We're not going to be, I don't think, discussing the intricacies of autos and food standards." Instead, she said, they would be talking about "how we can build on the trade relationship that we have".

A Wall Street Journal report on Tuesday suggested US negotiators are pushing for broad concessions from the UK, particularly seeking to ease restrictions on US agricultural exports including beef products.

"We're not going to be relaxing our food standards. We've been clear with the US about that and they respect that and understand that," Reeves said. "So that is not something that's on the table in these discussions."

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