UPDATE: |UK eyes major trade breakthrough with US despite global tariff turmoil News

The UK is among a number of countries that face US tariffs of 10% on a huge range of goods, from food to clothes to furniture, which were announced two weeks ago

Following a tumultuous week amid US President Donald Trump’s controversial implementation of sweeping tariffs worldwide, hopes have been ignited for a potential economic agreement between the US and UK. The recent trade tensions, especially the tariff escalations between Washington and Beijing, have led to concerns over the stability of the global economy.

At the beginning of March, Trump had proclaimed a new era of ‘reciprocal’ tariffs targeting multiple nations, but he subsequently amended his stance, reducing the rate to a uniform 10% for most, while imposing a staggering 145% on China.

This prompted Beijing to retaliate with an increase in its tariffs on American products to 125%, auguring a severe impact on global manufacturing and business operations.

In light of these developments, senior figures within the UK government are signalling that crucial discussions with the Trump administration may soon take place. Chancellor Rachel Reeves is particularly committed to brokering the “best deal possible” despite a US advisor downplaying the possibility of any concessions on tariffs.

Questioned about whether her confidence in reaching a deal with the US was waning, and whether she might consider turning to alternate trading partners, Ms. Reeves firmly denied such speculation. She underscored her determination to persevere in negotiating with the United States , reports the Express.

The UK’s aim for a favourable trade deal with the United States remained in focus as she stated: “We continue to engage with our counterparts in the United States and of course we want to secure the best deal possible for British jobs and British industry. And we are absolutely … resolved to do everything we can.”

She then added: “But, at the same time, we also want to improve trading relations with other countries around the world.”

The Times has cited senior government sources who hold a cautiously optimistic view that discussions regarding a deal may advance within days.

Yet this optimism was tempered by comments from Kevin Hassett, a senior economic adviser to Trump, who played down the prospect of a tariff-free agreement, suggesting the 10% charge was just a starting point and noting that lower tariffs would be “extraordinary”.

The UK, which found itself subject to a 10% tariff from the United States starting on April 2, initially considered the rate relatively moderate, especially compared to the 20% facing the EU and even higher tariffs imposed on countries like Cambodia, Vietnam, Sri Lanka, and Bangladesh.

Despite the seemingly promising arrangement, President Trump reversed course shortly thereafter, offering a 90-day reprieve on tariffs, levelling the playing field to a 10% tariff for global traders, excluding China which faced punitive charges of 145%.

“It is going to take some kind of extraordinary deal for the president to go below there,” clarified Hassett.

While Ms. Reeves has reaffirmed her dedication to preserving a robust economic relationship with the US, one of our principal trading partners, she also recognised the necessity to establish solid ties elsewhere. She is due to travel to Poland to engage in discussions with European financial ministers about the situation.

In the meantime, Reeves’ international counterparts have been conducting their own crisis meetings to determine the most effective response to Trump’s tariffs.