BoE Gov. Bailey: We've seen a lot of deleveraging happening.

BoE Gov. Bailey: We've seen a lot of deleveraging happening.

In a move to address the escalating trade war, U.K. Chancellor Rachel Reeves is set to travel to Washington this week for high-level financial talks. Reeves, Britain's chancellor of the exchequer, will meet with finance leaders from the G7, including Treasury Secretary Scott Bessent, a key trade adviser to President Donald Trump. Her visit coincides with the spring meetings of the International Monetary Fund and World Bank [1].

Reeves expressed concern over the global consequences of the Trump administration's trade policy, stating that the imposition of tariffs will have a "profound impact" on the global economy and the U.K.'s domestic economy [1]. The trip comes as the International Monetary Fund cut its 2025 growth forecast for the U.K. by 0.5%, but the U.K.'s projected growth still outpaces that of several European nations [1].

During her visit, Reeves is expected to underline the importance of tackling barriers to trade to kickstart economic growth and advocate for open trade that provides stability for businesses and security for working people [1]. She will meet with G20 and European finance ministers and address the World Economic Forum, emphasizing the need for a world economy that provides stability and fairness for businesses and investors [1].

Reeves also plans to meet with Bessent to advance negotiations to lift U.S. tariffs on British exports, including steel, aluminum, and cars, which currently face a 25% tariff [1]. British officials have signaled potential flexibility on issues such as the U.K.'s digital services tax and online safety regulations in exchange for tariff relief. Discussions on easing import barriers for high-quality U.S. beef, chicken, and pork may also be on the table, but food safety standards remain a firm red line in the negotiations [1].

British Prime Minister Keir Starmer spoke with Trump over the weekend to discuss the broader deal, emphasizing the importance of protecting the U.K.'s national interest [1]. Reeves echoed this message, pledging to stand up for Britain's national interest in her talks with U.S. counterparts. Despite the diplomatic efforts, U.K. officials are not expecting a breakthrough this week [1].

References:
[1] https://www.newsmax.com/newsfront/donald-trump-tariffs-united-kingdom/2025/04/22/id/1207936/