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UK chancellor Rachel Reeves on Friday held her first formal talks with US Treasury secretary Scott Bessent, with both finance ministers agreeing that there was a “landing zone” for a bilateral trade deal, according to British officials.
Reeves has opened the door to Britain cutting its tariffs on imports of US-made cars, along with agricultural and seafood products, as she tries to persuade the Trump administration to cut its levies on UK exports.
Bessent is seen inside the Starmer government as a relatively dovish figure on tariffs, but there is an acknowledgment that trade decisions are ultimately taken in the Oval Office. The US has imposed a 10 per cent baseline tariff on UK exports and a 25 per cent levy on cars and steel.
UK officials said Reeves — who had not met Bessent before her trip to Washington this week — had held a “good discussion” with her US counterpart.
One person briefed on the talks said: “Both feel there is a landing zone for a trade deal but we’re not there yet. The discussion has become more intense, so that’s positive. Discussion will continue.”
In a readout released on Friday evening, the Treasury said Bessent “noted the need for progress on fair and reciprocal trade” between the US and the UK.
Reeves, in Washington for the spring meetings of the World Bank and IMF, has been lauded by some of the world’s financial elite for her commitment to free trade and supply side reforms.
Kristalina Georgieva, IMF managing director, said: “She is tackling very tough issues, getting reprioritisation of spending, getting the regulatory environment to be more rational and then taking on the battle to get it done. And it’s really impressive.”
But Reeves is far less popular at home, with opinion polls showing her dire approval rating has fallen further in recent weeks.
YouGov reported this month that only 14 per cent of those surveyed said they had a positive view of the chancellor, with 62 per cent holding a negative view. The score of -48 represents Reeves’ lowest rating yet.
Reeves has this week sought to build relations with the Trump administration by signalling that some of its concerns about the global trading system were well founded.
Speaking at an event at the British embassy in Washington on Thursday evening, Reeves argued the US was right to be concerned about excessive trade imbalances — highlighting “challenges” associated with the rise of China’s economy as well as benefits.
“The challenges that Donald Trump’s administration has spoken about, about the global trade imbalances, are very real, and we should address them,” she said at an event hosted by Britain’s ambassador to the US, Lord Peter Mandelson.
Reeves added those trade imbalances were not always associated with “transparent policies”.
But she stressed in her meetings in Washington that the UK continued to believe in multilateral dialogue and institutions, and not in tariffs, emphasising the undesirability of trade wars.
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