Reeves travels to Washington to advocate for free trade amid Trump tariff tensions
Prime Minister Rachel Reeves will travel to Washington this week to defend global free trade at the IMF's spring meeting as Britain faces ongoing pressure from punitive tariffs imposed by U.S. President Donald Trump.
Reeves will use a highly-profile forum attended by global finance ministers and central bankers to highlight the importance of opening up trade in the UK and globally to economic resilience and growth. According to senior government officials, Britain's heavy reliance on trade, with exports accounting for about 60% of GDP, making not only free trade a global concern but a national priority.
During the visit, Reeves is expected to meet with U.S. Treasury Secretary Scott Bessent (accounted for one of the mildest voices in the Trump administration) to demand the removal of U.S. tariffs on British automobile and steel exports. Allies said she would also push for negotiations on a possible UK trade deal, although she would make it clear that any agreement must be aligned with the UK's national interests.
“Any deal that can be obtained always has a British national interest,” Reeves said before leaving.
The Prime Minister's visit is in the economic context and the International Monetary Fund is expected to lower its global growth forecast this week and issue new warnings about financial instability. Trump's active tariff regime has put significant pressure on the world's largest economies, including the EU, China and the United States itself, and market turmoil shows no signs of easing.
The dollar suffered from a sharp sell-off on Wall Street when the UK market closed due to bank holidays on Monday. The unrest was partly due to Trump's re-attack on Fed Chairman Jerome Powell, who was accused of failing to lower interest rates. White House adviser Kevin Hassett suggested Trump might be exploring ways to remove Powell from the office – a move that marks a major breakthrough in central bank independence.
While UK officials have little chance of getting full exemptions for 10% of global tariffs, they want to negotiate a more serious 25% tariff on specific British goods. To find common ground, ministers have offered Washington several concessions, including targeted tax breaks for U.S. technology companies.
Reeves is expected to raise these views in the bilateral negotiations in Washington, although expectations for immediate breakthroughs are low. “The timing comes down to one person, so there is a certain level of uncertainty there,” a British government source said.
Trump and his advisers have made encouraging statements in recent days on the possibility of a trade deal with the UK. But British officials remain cautious due to the unpredictability of the president's policies and the rising pressure on his administration on trading partners.
Ministers have prioritized a US-UK trade agreement as the cornerstone of the country's international economic strategy, especially as global protectionism rises. The Budget Responsibility Office warns that a full-scale trade war could shrink UK GDP by as much as 1% by 2026-27.
To protect key industries, the government recently announced a more flexible timeline dedicated to manufacturers for banning new petrol and diesel vehicles by 2030. Other components of the UK's industrial strategy, including support for the life sciences sector, are expected to be launched ahead of schedule as the government hopes to boost growth and attract investment in a volatile economic period.
