A trade deal with the US is not certain despite Government efforts to avoid Donald Trump‘s punishing tariffs, a senior minister has admitted.
Minister for Intergovernmental Relations Pat McFadden said an agreement with the White House is ‘possible’ – but it was better not to rush it.
His comments came after the US Treasury’s account of Rachel Reeves‘ talks with her counterpart in Washington DC appeared to play down the prospect of a trade deal.
It raises fresh fears for the economy after President Trump imposed a blanket 10 per cent tariff on all imports from the UK, on top of a 25 per cent levy on cars crossing the Atlantic and the same rate on steel.
Cabinet Office minister Mr McFadden was asked by Sky News yesterday how close Britain was to a trade deal with the US and replied: ‘I think an agreement is possible – I don’t think it’s certain and I don’t want to say it’s certain. Far better to have the right agreement than to rush and have a hasty agreement for the sake of having one.’
He said he would not put a timeframe on it ‘because it’s an unpredictable world’.
While Chancellor Ms Reeves was optimistic about a trade deal following her talks with Treasury Secretary Scott Bessent on Friday, the US’s readout focused more on Ukraine.
It also appeared to highlight President Trump’s desire for other countries to buy more from the US and to reduce trading deficits.
British chancellor Rachel Reeves held crucial talks with her US counterpart Scott Bessent on Friday as the UK government scrambles to find a way of dodging president Trump’s tariffs
US ambassador Lord Mandelson acknowledged at a reception last week that the process so far had been a ‘rollercoaster’.
Ms Reeves emphasised the looming Brexit ‘reset’ next month, with signs Sir Keir Starmer will make concessions on fishing, a youth mobility scheme and taking EU rules to get a closer relations.
‘I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important, because they’re our nearest neighbours and trading partners,’ the Chancellor told the BBC last week.
‘Obviously I’ve been meeting Scott Bessent this week whilst I’m in Washington, but I’ve also this week met the French, the German, the Spanish, the Polish, the Swedish, the Finnish finance ministers.
‘Because it is so important that we rebuild those trading relationships with our nearest neighbours in Europe, and we’re going to do that in a way that is good for British jobs and British consumers.’
