Britain’s top finance official Rachel Reeves has landed in Washington DC for a major round of talks with US leaders, aiming to ease growing pressure on the UK economy.
Her visit comes just as new figures reveal the country’s borrowing has reached its third highest level in nearly 80 years, while private sector activity has fallen sharply. The timing could not be worse, with UK businesses already struggling under new US trade tariffs that are causing real pain across key industries.
Reeves is meeting US Treasury Secretary Scott Bessent during the International Monetary Fund’s spring sessions. The face-to-face meeting is her first with Bessent and comes at a time when the UK is hoping to revive its trade ties with the US. This follows the decision by President Donald Trump to introduce sweeping 10 percent tariffs on UK imports, part of a broader protectionist shift in American trade policy. The move has already sparked a slowdown in UK exports and triggered new concerns over job losses and economic instability.
In her public remarks from Washington, Reeves said there is willingness on both sides to work toward a trade deal. UK officials believe a new agreement could ease pressure on businesses, particularly those hardest hit by tariffs. Reeves also pointed to the possibility of cutting existing trade barriers in the UK to help move negotiations forward. Despite the optimistic tone, many in Washington remain uncertain that a deal is within reach, especially as Trump’s administration has yet to offer clear signals about its demands or long-term goals.
While Reeves tries to make progress, the European Union has been weighing its own response to the trade tensions. EU leaders say they are still aiming for a peaceful resolution but are preparing countermeasures if talks with the US fail. The EU has already suggested increasing energy imports from the US and reducing certain tariffs in hopes of keeping trade discussions alive. Officials there say they won’t abandon their relationship with Washington but are also working on new trade partnerships around the world to avoid being caught off guard again.
The pressure Reeves faces in Washington is heavy. The UK economy is wobbling, and confidence among both investors and exporters is fading. The IMF has downgraded the UK’s growth outlook, blaming the trade war as a major factor. With warnings that the UK could be hit harder than other countries, there’s a growing sense that something needs to change fast.
If Reeves can leave Washington with clear signs of progress, she may give the UK a chance to steady itself. But if talks stall or fall apart, the country could be heading toward a deeper economic crisis. All eyes are now on what happens next in these tense and closely watched discussions.