Chancellor Rachel Reeves has hinted that the UK might lower tariffs on American car imports, as part of a bigger plan to strike a new trade deal with the US under Donald Trump.
Reeves, speaking in Washington, said she wants "to see tariff and non-tariff barriers reduced between the UK and the US". Right now, Trump has slapped a 25% tariff on UK cars, steel, and aluminium, and 10% on loads of other British goods. The UK wants those charges reduced — and is willing to negotiate.
One idea on the table? Dropping UK tariffs on American cars from 10% to just 2.5%, according to a document shared with US business groups and unions earlier today. Reeves seems open to the idea if it helps get a wider deal done.
But one thing she made clear: UK food standards aren’t up for debate. There’s been pressure in the past from the US to loosen rules — like allowing beef from cattle raised with growth hormones (which are banned in the UK and EU) — but Reeves says that’s not happening.
“We're not going to be reducing agricultural standards in the UK", she said, stressing that the US understands the UK’s position and why it matters to British farmers and shoppers.
Meanwhile, UK negotiators are working "flat out" to secure a deal that benefits British jobs, industry, and consumers. Reeves added that while they’re not rushing, they are confident a better UK-US trade relationship is possible.
Vice-President JD Vance recently said there’s a "good chance" of a deal — which would be a big move given how slow progress has been so far. Critics, like Shadow Chancellor Mel Stride, say the government should’ve moved faster.
Trump’s heavy-handed tariff approach — including 145% charges on Chinese goods — has shaken the global economy, pushing prices up in the US and slowing down global growth, according to the IMF. And Bank of England Governor Andrew Bailey has warned the UK needs to take trade war risks seriously.
Reeves says "I do understand the concerns the US has about countries around the world that run large and persistent trade surpluses with the US." But the UK isn’t one of them, so she believes a fair deal can be made.
On top of that, the UK just launched a review of cheap imports — especially from China — that are undercutting British retailers. This mirrors a move by the US, which is about to scrap a loophole that lets small packages (under $800) avoid import taxes. That change could impact online giants like Shein and Temu, which have already warned prices might go up.
To help level the playing field, the UK’s Trade Remedies Authority is getting more support to tackle unfair trading practices.
