Reeves alerts UK might decrease tariffs on US automobile imports in bid to safe Trump commerce deal | EUROtoday

Rachel Reeves has signalled that she is ready to slash tariffs on US car imports to the UK in a bid to land a commerce deal.

According to a report in The Wall Street Journal, a doc has circulating suggesting that the UK might cut back tariffs from 10 per cent 2.5 per cent on US automobiles and components.

The obvious concession was revealed because the chancellor arrived in Washington DC for a summit on the International Monetary Fund (IMF) and forward of a gathering with US Treasury secretary Scott Bessent.

The report is the second concession understood to be on the desk from the UK after stories that Keir Starmer’s authorities might shelve a deliberate digital providers tax.

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Speaking in Washington to enterprise leaders, Ms Reeves didn’t speak about particular proposals however mentioned she desires “to see tariff and non-tariff barriers reduced between the UK and the US”.

It got here as she tried to minimize the urgency of getting a US commerce deal over the road regardless of strain constructing on her to take action amid dire predictions in regards to the UK financial system.

With the clock ticking on Donald Trump’s 90-day pause for US tariffs coming to an finish in early July, the chancellor tried to not blink over the potential desperation of the UK place as she attended an International Monetary Fund (IMF) summit in Washington.

The IMF had warned that with Trump’s tariffs of at the least 10 per cent, the UK would have the very best inflation within the west of three.1 per cent, whereas progress for 2025 was downgraded from 1.6 per cent to 1.1 per cent.

But regardless of these warnings the chancellor informed ITN in Washington that she is in “no rush” to get a commerce deal carried out and pledged that any deal “will need to be in the British national interest”.

She mentioned: “I believe that we can secure an agreement with the United States. We’re not going to rush into a deal. We want the right deal in Britain’s national interest. We can all see that the world around us has changed. We’ve got to respond to those changes.”

When she was requested whether or not President Trump “can be trusted”, Ms Reeves responded: “Absolutely.”

She went on: “There’s a good relationship between the President of the United States, Donald Trump, and our prime minister, Keir Starmer. We saw that when the prime minister visited the White House recently, and also in the continued dialogue between our two leaders.”

During a three-day go to to the US, Ms Reeves is ready to carry conferences with G7, G20 and IMF counterparts in regards to the altering world financial system. She will make the case for open commerce that gives stability for companies and safety for working individuals.

The chancellor will underline the significance of tackling limitations to commerce to kickstart financial progress, supporting companies and placing extra money in working individuals’s pockets.

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Speaking earlier on the World Economy Summit, Ms Reeves claimed the US president was “keen to do a deal with the UK, reflecting the closeness of that relationship.”

She also suggested she would look to go beyond a deal on tariffs, including a “technology partnership” and “building on the close relationship we have on security and national defence”.

She said: “This isn’t just about damage limitation, it’s also about what the next step is.”

Adding that she would like to see a reduction in tariffs and non-tariff barriers on both sides of the Atlantic, Ms Reeves said: “I think that can be a bilateral process between our two countries to remove those remaining trade barriers that do exist, and if we work on that basis there is a deal to be done that will benefit industry both in the UK and the US and jobs in our countries as well.”

Ms Reeves avoided a question on which unnecessary barriers to trade she would like to see removed between the UK and US. This came amid fears that the UK may need to cut back on food safety standards to appease US demands to sell chlorinated chicken in Britain.

The Independent has previously revealed how JD Vance is leading efforts to force Britain to backtrack on hate speech and online safety laws as well as a digital services tax in a so-called defence of free speech as part of a trade deal.

The chancellor is also resisting pressure to change course on her economic policy despite warnings she will have to make more cuts or borrow more. In particular, she made it clear that election pledges not to raise income tax, national insurance for employees or VAT will not be broken.

She told ITN: “We’ve made that commitment in our manifesto and we will honour the commitments that we made to the British people. British people are still concerned around the cost of living.”

With talks set to conclude on 19 May over a Brexit reset in parallel discussions with the EU to the US talks, Ms Reeves has additionally hinted at a possible compromise on a youth mobility scheme, that will enable younger individuals to dwell and work freely in Europe for 2 years.

Pressed on the problem she refused to rule out the scheme, saying: “Those discussions with our colleagues and allies in the European Union are ongoing at the moment. We made a clear manifesto commitment to bring down net migration and for no return to free movement within the European Union. It is important that we determine who comes into our country and those things are not up for negotiation.

In a meeting in Washington DC, co-chaired with Polish Minister of Finance, Andrzej Domański, the chancellor also set out the British government’s call to better coordinate European efforts to increase defence spending, grow our defence industrial base, and get more for our money.

She said: “The world has changed and the UK and its European allies must step up and meet the moment.

“Merely increasing spending is not enough. In an uncertain and changing world we must be strategic in where and how we invest – to secure our industrial future, meet our NATO commitments, and deliver the security for working people that supports our Plan for Change.”