For years, the United States and Britain have praised their “special relationship,” covering everything from trade to military support. This is exemplified by the first deal struck after President Trump’s “Liberation Day” tariff announcement: the UK agreed to a 10% rate along with many other export opportunities – much more relaxed than many other countries.
Speaking at the Fortune Global Forum in Riyadh on Monday, British Chancellor of the Exchequer Rachel Reeves said the current relationship between No. 10 Downing Street and the White House is based on a common philosophy: concerns about imbalances on the global stage.
Few other countries have achieved such success so quickly in Trump’s second administration. The United States and China remain at loggerheads ahead of a planned meeting between the president and prime minister later this week to reach an agreement with Japan and the European Union after intense negotiations.
Reeves said the governments in London and Washington were cooperating at all levels and said: “We are very pleased to have reached our first trade deal with the United States”
The Labor MP added: “They are concerned about global imbalances and we share a lot of common concerns and I think the Prime Minister, Sir Keir Starmer, has done a really good job of building a personal relationship with Donald Trump, but also building those relationships through our government and his government: myself with Scott Besant, our business secretary Howard Lutnick, but also the Prime Minister’s business adviser Varun Chandra, who has done that with Ambassadors Greer and Howard Lutnick.”
“I think relationships are important – no matter what industry you’re in, whether it’s business or politics – and they’re very important on the international stage.”
While President Trump’s “America First” agenda has come under fire from some of America’s major trading partners, it’s no surprise that the UK and Northern Ireland Assembly is unpopular after striking out on its own.
The UK officially left the EU in January 2020 after years of negotiations with the EU following the 2016 referendum. It has been a member of the European Union since the early 1970s.
As the world’s largest economy, the United States has greater leverage at the negotiating table. Even so, President Trump’s threat-and-retreat strategy has led markets and foreign policymakers to question the depth of conviction in the Oval Office.
In fact, Wall Street is used to Trump pushing deadlines to the 11th hour. An acronym was developed: TACO Trade (Trump is always timid)). This can sometimes backfire. Trump said the market’s exuberance – as analysts relied in part on the idea that tariffs would not go ahead – was justified in itself Advance the plan.
Reeves advised foreign governments hoping to strike a deal with Trump not to bet against him.
“(Take) them seriously,” she said. “That’s absolutely key: focusing on their concerns about today’s world.”