Chancellor Rachel Reeves has said she plans to meet US Treasury secretary Scott Bessent as President Donald Trump is yet to offer allies any reprieve from his tariff policy.
The UK is facing ten per cent tariffs on its goods exports to the US, putting the government under pressure to agree a deal that protects British firms.
Reeves told the House of Commons on Tuesday that she was set to meet Bessent as she emphasised her priority was to remove trade barriers.
“Discussions are ongoing across a range of Government departments, including the Treasury, with the United States, and I will be meeting US treasury secretary Scott Bessent shortly,” she said.
Reeves also insisted that the government was working to eliminate higher tariffs of 25 per cent imposed on car and steel sectors.
“We are discussing a range of different areas. But the focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on those sectors that are subject to the higher tariffs.”
“Although the ten per cent tariffs are lower than many other countries around the world, and we welcome that, the additional tariffs on cars, on steel, and potentially on life sciences pose a real challenge to our country because those are some of our biggest export markets.”
“Ratcheting up barriers to trade and tariffs will not be in our country’s interest for inflation or indeed for supply chains,” she added.
Reeves also revealed that she spoke to Bank of England governor Andrew Bailey, who said the markets and banking remained intact.
She also said meetings with European Union and Indian ministers have been set up.
Reeves told MPs: “Over recent days, I have had discussions with my counterparts in Canada, Australia, Ireland, France, Spain and France, and with the European Commission. We will pursue these talks in earnest.
“Tomorrow, I will hold talks with the Indian government as part of our two nations’ economic and financial dialogue as we seek to secure a new trade deal with India.”
President Trump has doubled down on his tariffs as he has threatened further 50 per cent taxes on Chinese goods.
Finance ministers are lining up to open trade talks with the US administration.
Israeli Prime Minister Benjamin Netanyahu appeared to have jumped to the front of the queue as he visited the White House on Monday afternoon.
Some economists have noted that a trade deal could be on the cards for the UK, which could upgrade low growth forecasts of less than one per cent for th eyar.
But Institute for Fiscal Studies (IFS) director Paul Johnson suggested that the UK would be “screwed” with or without a trade deal.
“If it became clear that there was a road through this to different levels of tariffs, then that may be positive for the markets. But the uncertainty is going to be damaging whatever [the situation],” he told Times Radio on Monday.