Trump’s trade war will have ‘profound impact’ on UK economy, says Reeves

LONDON — Chancellor Rachel Reeves has warned that Donald Trump’s trade war will have a “profound impact” on the U.K. economy, as she heads to Washington grappling with downgraded domestic growth forecasts.

The U.K.’s top finance minister is attending the spring meetings of the International Monetary Fund (IMF) and World Bank, where she will meet G7 finance ministers, including her U.S. counterpart Treasury Secretary Scott Bessent face-to-face for the first time.

In comments released ahead of the three-day visit, Reeves said on Tuesday night: “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.”

The IMF slashed its 2025 U.K. growth forecast by 0.5 percent earlier on Tuesday. The revised figure puts Britain’s GDP growth above Japan, France, Italy, Germany, and the Euro area, and behind the U.S. and Canada.

But while the forecast was performed after Trump’s Liberation Day announcement, it was completed before he dialled tariff rates down to 10 percent for most countries.

In meetings with G20 and European finance ministers Wednesday, and in an address to the world economy summit, “the chancellor will underline the importance of tackling barriers to trade to kickstart economic growth,” according to a U.K. government release.

Reeves said she will continue to make the case for “open trade that provides stability for businesses and security for working people.” “We need a world economy that provides stability and fairness for businesses wanting to invest and trade,” the chancellor said.

‘Protecting the national interest’

Reeves plans later this week to sit down in person with Treasury Secretary Scott Bessent — now U.S. President Trump’s go-to trade negotiator — in the hope of pushing forward talks to get the U.K. out from under U.S. tariffs.

British officials are prioritizing efforts to negotiate down the 25 percent tariffs on cars, steel and aluminum, and looming duties on pharmaceuticals, imposed by the Trump administration.

The U.K. has offered to rethink its digital services tax and review enforcement of its online safety and digital competition rules in exchange for a deal.

There are also potential concessions on agriculture that could include lowering tariffs on high quality U.S. beef, chicken and pork imports, although food standards remain a red line in London.

When British Prime Minister Keir Starmer discussed the deal in a call with Trump over the weekend, he reiterated “the importance of protecting the national interest” in any pact.

Reeves has also pledged to “stand up for Britain’s national interest” in the talks. Officials aren’t expecting a breakthrough this week.