British finance minister Rachel Reeves said on Thursday she shared some of U.S. President Donald Trump’s concerns about imbalances in the world economy, a day before she was due to discuss a trade deal with her U.S. counterpart.
Reeves, speaking at the International Monetary Fund, said trade tariffs – launched this month by Trump and followed up by China – benefited no one.
But she said she was worried about China’s exporting power and how it has hit workers in the United States, Britain and beyond.
“Where the US does have a point is that there are substantial imbalances in the global economy, with some countries running large persistent surpluses and others large persistent deficits,” Reeves said in a panel discussion.
“It does matter where things are made and who makes them, and we can’t be agnostic or naive about that,” she said.
Reeves is due to meet U.S. Treasury Secretary Scott Bessent on Friday. High on the agenda will be a possible trade deal which Britain hopes will reduce the hit from Trump’s import tariffs to its exporters of goods including cars and steel.
Reeves said earlier on Friday she was hopeful an agreement with Britain’s single-biggest export market would be reached.
“I am confident that a deal can be done, that our strong relationship – when it comes to defense, when it comes to security and when it comes to the economy and prosperity – means that we can strike a deal,” she told U.S. television outlet Newsmax, which is close to the Trump administration.
Reeves also stressed Britain’s commitment to increase defense spending, touching on another policy priority for Trump.
On Wednesday, Reeves said Britain would not rush to secure a deal with Washington and ruled out making concessions on food standards.
The Wall Street Journal reported on Tuesday that the U.S. wanted Britain to reduce levies and other non-tariff barriers on a variety of goods including a relaxation of rules on U.S. agricultural imports, such as beef.
Britain also wants to lower post-Brexit trade barriers with the European Union, a prospect welcomed on Thursday by IMF chief Kristalina Georgieva, who was speaking alongside Reeves.
“When the divorcees – the EU and UK – are dating again, we are in a great place,” Georgieva said, prompting Reeves and her German counterpart, Joerg Kukies, to swap a high-five.
British and European officials are aiming for a defence agreement at a planned summit in May which could also kick off negotiations for closer cooperation in areas such as energy, fish, food standards and opportunities for young people.
(Writing by William Schomberg）
