UK and US Finance Chiefs Clash—or Maybe Just Sip Tea—Over Trade Talks

Britain’s Rachel Reeves sat down with America’s Kenneth Bessent in what was either a high-stakes negotiation or another glorified photo-op for the financial press. Both sides insist ’progress’ was made—though progress, like central bank promises, tends to be fluid.

Behind closed doors: Expect the usual chatter about ’strengthening economic ties’ while both sides quietly jockey for advantage. The real question—will this move markets, or just generate another forgettable headline?

Bonus jab: If history’s any guide, these talks will yield exactly one (1) non-binding memorandum of understanding—Wall Street’s favorite placebo.

Reeves discusses ‘prosperity deal’ with Bessent in ‘upbeat and positive’ talks

Chancellor Reeves discussed what she called a “prosperity deal” with the U.S. Treasury Secretary Bessent in a meeting her team described as “upbeat and positive.” The U.S. has made fresh demands in recent days, including calling for tariffs on car imports to the UK to be cut.

The U.S. Treasury stated in a readout that Bessent acknowledged the need for fair and reciprocal trade and that the two also held positive discussions on taxation, financial innovation, and technology partnerships. However, Reeves said on Wednesday that Britain would not rush to secure a deal with Washington and ruled out making concessions on food standards.

“Today, I met with Secretary Scott Bessent to discuss the UK-U.S. economic prosperity deal and our goal of reaching an agreement that is in both our national interests.”

–Rachel Reeves, Britain’s Finance Minister 

Reeves pointed out that the UK-U.S. relationship had delivered prosperity for businesses and working people on both sides of the Atlantic. Notably, although the UK has been negotiating hard to secure exemptions from some of Trump’s harshest tariffs, including the 25% levy on car imports, Reeves left Washington without being able to claim any tangible progress.

Reeves claims that UK-EU trade is more important than U.S.

Before meeting Bessent, Chancellor Reeves suggested that the UK’s trading relationship with the EU was arguably even more important than that with the United States. She said that she understood why there was so much focus on the UK-U.S. trading relationship. Still, she noted that the Eurozone trading relationship was more important because European countries are considered the UK’s close neighbors and trading partners.

British and European officials recently disclosed that they are aiming for a defense agreement at a planned summit in May. This could also kick off negotiations for closer cooperation in other areas like energy, fish, food standards, and opportunities for young people.

Reeves met German Finance Minister Joerg Kukies earlier on Friday in Washington to prepare for a gathering of European leaders to seek to improve ties between Britain and the bloc, strained by the 2016 Brexit vote. At the same time, Reeves and UK’s Prime Minister Keir Starmer hoped to remove some post-Brexit trade barriers with the EU. Although the U.S. was Britain’s biggest trading partner, the EU bloc bought more of the country’s exports.

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