Overview

• UK Chancellor Rachel Reeves proposes reducing tariffs on US car imports from 10% to 2.5% to secure a trade deal with the US.
• Reeves indicates the UK may shelve its planned digital services tax as part of broader concessions in negotiations.
• The proposed trade agreement aims to reduce barriers created by President Trump’s tariffs on steel, aluminum, and autos.
• The IMF warns US tariffs could exacerbate UK inflation, already projected to be the highest in the West, and downgrade growth prospects.
• Reeves remains confident in the strong relationship between Prime Minister Keir Starmer and President Trump as talks continue under pressure from looming US tariff deadlines.