U.K. Chancellor Rachel Reeves says President Donald Trump’s escalating trade war will have a “profound impact” on Britain’s economy as she travels to Washington this week for high-level financial talks amid falling domestic growth forecasts, Politico reported.
Reeves, Britain’s chancellor of the exchequer, is in Washington for the spring meetings of the International Monetary Fund and World Bank, where she will meet with finance leaders from the G7, including Treasury Secretary Scott Bessent, a key trade adviser to President Donald Trump.
Just before her visit, Reeves voiced concern over the global consequences of the Trump administration’s trade policy.
“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,” she said Tuesday night in a statement.
The trip comes as the International Monetary Fund cut its 2025 growth forecast for the U.K. by 0.5%. Despite the downgrade, the U.K.’s projected growth still outpaces that of Japan, France, Italy, Germany, and elsewhere in Europe but lags behind that of the United States and Canada.
According to a U.K. government release, Reeves will meet with G20 and European finance ministers on Wednesday and address the World Economic Forum. In her remarks, she is expected to “underline the importance of tackling barriers to trade to kickstart economic growth.”
Reeves said she would continue to advocate “open trade that provides stability for businesses and security for working people.” She added, “We need a world economy that provides stability and fairness for businesses wanting to invest and trade.”
Reeves also plans to meet with Bessent to advance negotiations to lift U.S. tariffs hitting British exports. Current 25% tariffs imposed by the Trump administration on U.K. steel, aluminum, and cars, along with looming pharmaceutical duties, remain a top concern.
In exchange for tariff relief, British officials are signaling potential flexibility on issues that have long been sticking points with Washington. These include the U.K.’s digital services tax and the enforcement of online safety and digital competition regulations.
Concessions on agriculture may also be on the table, with discussions reportedly touching on easing import barriers for high-quality U.S. beef, chicken, and pork. But British officials maintain that food safety standards remain a firm red line in the negotiations.
Over the weekend, British Prime Minister Keir Starmer spoke with Trump to discuss the broader deal. A readout of the call said Starmer emphasized “the importance of protecting the national interest” in any agreement.
Reeves echoed that message, pledging to “stand up for Britain’s national interest” in her talks with U.S. counterparts. Despite the flurry of diplomacy, U.K. officials are not expecting a breakthrough this week.
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