Rachel Reeves will fly to Washington next week to meet her American counterpart for the first time, as the British government intensifies efforts to secure a UK-US trade deal.
The chancellor will be in the US from Tuesday to Friday for the spring meetings of the International Monetary Fund. Central to her visit will be a meeting with US Treasury Secretary Scott Bessent, whom UK officials view as a potential ally in trade negotiations.
With Donald Trump considering a UK state visit in September, British officials are increasingly hopeful that tariff reductions could be agreed in the coming weeks. Trade was top of the agenda in a phone call between Trump and UK Prime Minister Keir Starmer on Friday—the first since Trump’s recent tariff announcement. Downing Street described the conversation as “ongoing and productive” and lasting 35 minutes.
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A government source said Reeves would “make the argument for a trade relationship that is deeper and more open than the one on the table at the moment.” The chancellor has said that “active negotiations” are underway, adding that any agreement “will always have front and centre British national interest.”
Ministers have placed a trade deal high on the UK’s bilateral priorities. The Office for Budget Responsibility has warned that a global trade war could shrink the UK’s GDP by 1% in 2026–27.
Although British officials are skeptical about securing a full exemption from Trump’s proposed 10% global tariff, they are optimistic about reducing the 25% rates proposed for key exports like steel, aluminium, and cars. Pharmaceuticals, the UK’s second-largest export to the US (worth about £7bn), are not yet covered in the UK’s draft proposal. Cars, the top UK export to the US, account for approximately £8bn annually.
In exchange, the UK has offered to reduce its digital services tax, which currently affects a small number of major US tech firms.
While the current draft deal is relatively narrow, officials hope it could serve as the foundation for a broader agreement. However, larger negotiations may prove politically challenging, particularly around issues like US access to NHS contracts or importing chlorinated chicken.
Trump and his aides have shown optimism, with his press secretary Karoline Leavitt promising new deals “very soon” and Vice President JD Vance stating Thursday, “There’s a good chance… we’ll come to a great agreement.”
Trump also expressed eagerness to visit the UK again, calling a possible September trip “beautiful.”
A British official commented: “They have the outline agreement. We presented it before the tariff announcement. The ball is in their court. The only question is: do they want to do a deal or not?”
Reeves’ meeting with Bessent—who is not aligned with the tariff hardliners in Trump’s administration—will cover trade, the global economy, and institutional reform. While she will not negotiate specifics directly, Reeves is expected to strongly advocate for the UK’s priorities: steel, cars, and pharmaceuticals.
Bessent has identified the UK as a priority during the 90-day pause on tariff hikes, alongside Japan, Australia, South Korea, and India. However, he cautioned this week that not all trade deals may be completed within that window.
Reeves will also participate in an IMF panel, where she plans to argue for open trade and a reformation of global institutions like the IMF, WTO, and World Bank to reflect today’s economic realities.
In addition, she will meet with business and financial leaders from the US, Europe, and India to promote the UK as a stable and attractive destination for investment during global economic uncertainty.
