Reeves meets with her American counterpart amid US-UK trade deal talks

Rachel Reeves has met her American counterpart as the UK and US seek to hammer out a trade deal.

The Chancellor met US Treasury secretary Scott Bessent on Friday afternoon, after having claimed Britain’s relationship with the EU is “arguably even more important” than trading links with the US.

Ms Reeves said the discussions had focused on “reaching an agreement that is in both our national interests” in a post on X, formerly Twitter, following the meeting.

The Chancellor’s insistence on a deal which benefits both parties comes after ministers have faced questions about whether they would accept concessions as part of the deal, including allowing American food produce into the UK and abolishing a tax on big US tech firms.

In an interview with the BBC, Ms Reeves earlier said the Government was working “flat out” to secure a deal that would mitigate the impact of tariffs imposed by Mr Trump earlier in April.

But Ms Reeves also suggested that improving links with the EU was a more significant priority.

She said: “I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important, because they’re our nearest neighbours and trading partners.”

Downing Street said the Chancellor’s remarks had been “a statement of fact that the EU is our largest trading partner”.

A Number 10 spokesman also pointed to previous comments by Sir Keir Starmer in which he had said it was a “false choice between the EU and the US”.

Our trading relationship with Europe is arguably even more important, because they’re our nearest neighbours and trading partners

Ms Reeves’s meeting with Mr Bessent comes at the end of a three-day trip to Washington which saw her hold talks with foreign finance ministers during the International Monetary Fund (IMF)’s spring meetings.

She has already met EU commissioner Valdis Dombrovskis, Canadian finance minister Francois-Philippe Champagne and Chinese finance minister Lan Fo’an as she seeks to deepen trade links with countries around the world in the wake of Mr Trump’s tariff announcement.

As well as pursuing a “reset” in relations with the EU, the Labour Government has sought a thawing of Britain’s relationship with China after years of little contact under the previous government.

She was also expected to meet Mr Trump’s senior economic adviser Kevin Hassett after her talks with Mr Bessent.

Mr Trump imposed 10% tariffs on UK exports to the US when he revealed sweeping levies on the rest of the world on April 4, along with 25% charges on cars, steel and aluminium.

The Chancellor told the BBC she “understands what President Trump wants to address” when speaking about tariffs.

“We’re all grappling with this issue of tariffs but I think that there is an understanding why President Trump wants to address some of the global imbalances there are in the system,” she told the broadcaster.

Ms Reeves has said there is “a deal to be done” with Washington, despite suggestions from senior US officials that Mr Trump regards the 10% tariff as a “baseline” he is unlikely to go below.

But she has also ruled out several concessions the US is thought to be looking for as the price of a deal.

These include reductions in food standards rules that limit imports of American agricultural goods and changes to online safety legislation that some US politicians believe limit freedom of speech.

A deal could, however, involve a reduction in tariffs on US cars in exchange for a cut in tariffs on British-made vehicles, with Ms Reeves declining to rule out such a move on Wednesday.

Liberal Democrat deputy leader Daisy Cooper said the Chancellor was “absolutely right that our trading relationship with Europe is more important, but the Government’s approach so far shows these are little more than empty words”.

She said: “This Government has bent over backwards to appease Donald Trump but barely lifted a finger to unleash growth by boosting trade with Europe.

“It’s time for the Government to get serious about our trading relationship with Europe by ripping up the red tape from the botched Brexit deal, agreeing a capped youth mobility scheme and negotiating a UK-EU customs union.”