Rachel Reeves is in Washington for crucial discussions on a potential UK-US trade deal that is reportedly ready to sign. However, the deal risks being derailed by President Trump's potential tariffs on pharmaceuticals, which remain unaddressed in the current draft. Reeves aims to persuade the Trump administration to lower tariffs on key UK exports like steel and cars, while meeting key US officials to secure support for the deal. Despite the draft's satisfactory status, its fate hinges on the president's decisions, particularly concerning pharmaceutical imports which are significant for UK exports.
While in Washington, Reeves will meet her American counterpart Scott Bessent for the first time. He is seen as one of the most amenable members of the Trump administration to doing a trade deal with the UK.
Under the draft agreement, the UK will reduce the headline rate of a digital services tax paid by US companies, in return for relief on 25% tariffs on steel, aluminium and cars.
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