Donald Trump to decide if it's deal or no deal on US-UK trade as Reeves heads to US

Donald Trump will tell Rachel Reeves whether it's a deal or no deal for a US trade deal as the Chancellor begs for special treatment. Ms Reeves is in Washington for an International Monetary Fund summit of finance ministers and business leaders from across the G7 and G20.

And while she is there the first face-to-face meetings with American counterpart Scott Bessent will take place on a potential gold-plated deal between the US and UK. It comes after President Trump announced sweeping tariffs on imports from the rest of the world. These included 10% levies on all UK goods - then the lowest level imposed on any country - along with 25% tariffs on steel and cars.

Trump said he is in "no rush" to negotiate exceptions to his “Independence Day” tariff regime which plunged global stick markets into meltdown and triggered talk of world recession.

US Treasury Secretary Mr Bessent said: “We were having a discussion about which countries to prioritise, and I think you are going to see some very large countries with large trade deficits come forward very quickly.

“If they come to the table with solid proposals, I think we can end up with some good deals.”

In 2020, the US and UK signed an agreement on various goods, continuing trading terms from previous United States-European Union agreements.

But former US President Joe Biden was in no hurry to help, especially as he was Vice President in the Barack Obama administration when he famously said on a visit to the UK at the invitation of former Prime Minister David Cameron on the eve of the 2016 referendum that Britain would join the "back of the queue" if it voted to leave the EU, adding “part of being friends is being honest”.

The UK has nearly no trade imbalance with the US when it comes to goods, exporting £59.3bn and importing £57.2bn.

As things stand, the UK is facing a 10% tariff on all goods exported.

Car and steel exports are taking a stronger blow, with a separate 25% levy on sales to the US market. Cars remain Britain’s single largest export, valued at £8.3bn in the year to November 2024.

US Vice President JD Vance said: “The President really loves the United Kingdom. He loved the Queen. He admires and loves the King. It is a very important relationship. And he's a businessman and has a number of important business relationships in [Britain]. “But I think it's much deeper than that.

"There's a real cultural affinity. And, of course, fundamentally, America is an Anglo country.

"I think there's a good chance that, yes, we'll come to a great agreement that's in the best interest of both countries."

Mr Vance said the "reciprocal relationship" between the US and UK gave Britain a more advantageous position than other European countries when it comes to negotiating new trade arrangements, adding: "While we love the Germans, they are heavily dependent on exporting to the United States but are pretty tough on a lot of American businesses that would like to export into Germany."

Ms Reeves said: "The world has changed and we are in a new era of global trade. I am in no doubt that the imposition of tariffs will have a profound impact on the global economy and the economy at home.

"This changing world is unsettling for families who are worried about the cost of living and businesses concerned about what tariffs will mean for them. But our task as a Government is not to be knocked off course or to take rash action which risks undermining people's security.”