Britain’s Chancellor Rachel Reeves said the U.K. is working “flat out” on a trade deal with the U.S. — and specifically seeking to lower tariffs on automotives and those looming over pharmaceuticals.
“We want to see barriers to trade fall — and we recognize that both sides need to do that,” Reeves told POLITICO in an interview in Washington D.C. on Thursday.
“We’re very willing to do what we can on the U.K. side to make it easier for U.S. businesses to sell their goods in the U.K. in the way that we are also keen to make it easier for British businesses, including in automotives, in pharmaceuticals, a whole range of areas, to be able to export more to the U.S.”
The chancellor’s comments, made during a three-day visit to the U.S. capital for the International Monetary Fund’s Spring talks, shed more light on the areas the British government is targeting as it tries to land a deal with Donald Trump’s administration.
They came ahead of a meeting with Reeves’ American counterpart Treasury Secretary Scott Bessent and Director of the National Economic Council Kevin Hassett on Friday.
Trump slapped 25 percent tariffs on cars imports to the U.S. earlier this month and there are looming duties on pharmaceuticals, a key U.K. industry.
U.K. officials are “working flat out to achieve a deal,” Reeves said, but she stressed that “the most important thing is we get the right deal for Britain, not a rush deal.”
‘Huge opportunities’ in tech
Britain’s finance chief also stressed that technology would be central to any deal with the U.S., saying there were “huge opportunities” for the two countries to strike an agreement.
“We can see that with the investment that comes to the U.K. from the U.S. … the U.K. has offered, for many businesses, the number one investment destination. And in the same way that we have a defense and security partnership with the U.S., I think that we can take that to the next stage with a technology partnership based on the sort of scientific enterprise of both of our countries, which is very strong, based on our great research base, entrepreneurial spirit,” she said.
However, Reeves again declined to say whether the U.K. would consider changing its digital services tax — which hits U.S. and other tech giants — in a bid to avoid tariffs.
“It’s up to the U.K. to set its own tax policy, and I think there is a shared understanding that companies should pay tax in the countries in which they operate,” she said. “But obviously these things are areas that we’re in discussions on at the moment.”
Despite the challenges, Britain’s finance chief insisted she is “confident that there is a deal to be done,” arguing that Britain is “in a strong position” because it had a balanced trading relationship with the U.S.
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