British Finance Minister Rachel Reeves is navigating delicate waters between Washington and Brussels.
Shortly after emphasizing the need to strengthen ties with Europe, she met with U.S. Treasury Secretary Scott Bessent on Friday to discuss a potential economic prosperity deal.
Their meeting, held during a gathering of global finance chiefs at the International Monetary Fund, came as concerns mounted over U.S. President Donald Trump’s planned import tariffs.
Reeves said the UK-U.S. relationship “has delivered prosperity for businesses and working people on both sides of the Atlantic” in a brief social media statement, adding that she and Bessent discussed “the UK-U.S. economic prosperity deal and our goal of reaching an agreement that is in both our national interests.”
A readout from the U.S. Treasury noted that Bessent stressed the need for progress on fair and reciprocal trade. The two also discussed taxation, financial innovation, and technology partnerships.
Britain is hoping to ease the potential blow from Trump’s tariffs—which would hit British car and metals exporters hard—by securing an agreement with Washington.
The broader ambition is to boost tech investment and safeguard business competitiveness at home.
During her Washington trip, Reeves has echoed some of Trump’s concerns about the global economy, particularly China’s export-heavy model, but made it clear that high tariffs are not the solution.
At the same time, Reeves and Prime Minister Keir Starmer are working to reduce post-Brexit trade barriers with the European Union.
While the United States is Britain’s largest individual trading partner, the EU as a bloc remains a bigger buyer of British exports.
Reeves told the BBC she understood why there is so much focus on the U.S. relationship, but said the European relationship is “arguably even more important, because they’re our nearest neighbours and trading partners.”
Earlier this week, she said Britain would not rush into a deal with Washington and ruled out lowering food standards that could harm future food exports to the EU.
On Friday, Reeves also met German Finance Minister Joerg Kukies to prepare for the upcoming UK-EU Summit in May, which she described as “an important moment in the reset between the United Kingdom and the European Union.”
Meanwhile, the IMF downgraded its UK growth forecast for 2025 to 1.1%, from an earlier estimate of 1.6%, partly blaming the hit from Trump’s tariffs.
Despite the cut, Britain’s economy is still expected to grow faster than Germany and France next year.
Reeves rounded out her Friday meetings with China’s Finance Minister Lan Foan, following Britain’s announcement of tougher customs controls and a stronger anti-dumping system.
She said Britain’s “clear-eyed reengagement with China ensures we grasp opportunities when it’s right for the UK,” adding that both sides agreed to continue cooperation.
As Reeves juggles major global relationships, Britain’s path to renewed growth hinges on threading a delicate needle—strengthening old alliances while carefully building new ones.
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