UK finance minister says she will meet US treasury secretary ‘shortly’

LONDON: British finance minister Rachel Reeves said on Tuesday she would meet U.S. Treasury Secretary Scott Bessent “shortly” as part of broader talks over a new economic partnership that London hopes will reduce its tariff levy.

Reeves, speaking to parliament as global markets stabilized following days of turmoil, said the government was seeking to build stronger trade ties with the U.S., while also providing stability for families, businesses and investors at home.

U.S. President Donald Trump imposed a 10% tariff on most imports from Britain and a 25% tariff on key sectors such as cars and steel.

“All of the decisions that we make as a government will be underpinned by the stability of our non-negotiable fiscal rules,” she said, “A trade war is in nobody’s interest. It is why we must remain pragmatic, cool-headed, and pursue the best deal with the United States that is in our national interest.”

Trump’s global tariff programme has sent shockwaves through financial markets, but Reeves said Bank of England Governor Andrew Bailey had confirmed that markets were functioning effectively and that banks remained resilient.

Bessent says countries may avoid reciprocal tariffs by halting unfair barriers

On Monday, British 30-year borrowing costs rose by the most in a single day since October 2022, when they were suffering in the aftermath of then Prime Minister Liz Truss’ “mini-budget”.

Gilt prices were more stable on Tuesday and an auction also ran smoothly.

Trump’s announcement of tariffs last week has also prompted governments around the world to seek closer trading ties with other partners, to help protect their industries.

Reeves said she had in recent days spoken to her counterparts in Canada, Australia, Ireland, France, Spain and to the European Commission. She is also due to meet India’s finance minister this week to discuss their trade deal talks.

Reeves said that Trump’s tariffs would have huge implications for the world economy.

Reeves is due to travel to Washington later this month for a gathering of top finance officials from around the world at the International Monetary Fund and World Bank when Bessent is expected to meet some of his counterparts.