By William Schomberg

WASHINGTON (Reuters)

British finance minister Rachel Reeves expressed alignment with U.S. President Donald Trump’s concerns regarding global economic imbalances, on the eve of trade talks with her U.S. counterpart.

Concerns Over Trade Tariffs

Speaking at the International Monetary Fund, Reeves criticized the trade tariffs imposed by Trump, which were mirrored by China, stating they do not benefit anyone. She highlighted her worries about China’s exporting dominance and its impact on workers in the U.S., 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 mentioned during a panel discussion.

She emphasized the importance of knowing where goods are produced and who is producing them, acknowledging that naivety regarding these issues is unwise.

Upcoming Meetings and Negotiations

Reeves is set to meet U.S. Treasury Secretary Scott Bessent on Friday, with discussions focused on a potential trade agreement aimed at alleviating the impact of Trump’s import tariffs on British goods such as cars and steel. She expressed optimism about finalizing a deal, citing strong ties between the two nations relating to defense, security, and economic prosperity.

Reeves reiterated Britain’s commitment to increasing defense spending, aligning with another priority for Trump. However, she indicated that the UK would not hasten to secure a deal with the U.S. and would not compromise on food standards.

Trade Barriers and Brexit

Reports from The Wall Street Journal noted that the U.S. seeks Britain to lessen levies and non-tariff barriers on various goods, including potential relaxations regarding U.S. agricultural imports. Meanwhile, the UK aims to decrease post-Brexit trade barriers with the European Union, a strategy endorsed by IMF chief Kristalina Georgieva.

> “When the divorcees – the EU and UK – are dating again, we are in a great place,” Georgieva remarked, leading to a light-hearted moment between Reeves and her German counterpart, Joerg Kukies.

British and European officials are working towards a defense agreement at a planned summit in May, potentially paving the way for broader cooperation in areas such as energy, fishing, food standards, and opportunities for youth.