Rachel Reeves US talks live: Chancellor under pressure to secure Trump trade deal amid tax hike fears

Rachel Reeves has pledged to “defend Britain’s interests” as she prepares to meet fellow finance ministers in Washington and push for a US trade deal.

Ahead of her visit, Ms Reeves said: “The world has changed and we are in a new era of global trade. I am in no doubt that the imposition of tariffs will have a profound impact on the global economy and the economy at home.

“This changing world is unsettling for families who are worried about the cost of living and businesses concerned about what tariffs will means for them. But our task as a Government is not to be knocked off course or to take rash action which risks undermining people’s security.

“Instead, we must rise to meet the moment and I will always act to defend British interests as part of our plan for change.

“We need a world economy that provides stability and fairness for businesses wanting to invest, and trade, more trade and global partnerships between nations with shared interests, and security for working people who want to get on with their lives.”

Rachel Reeves is preparing for crucial talks with her US counterpart as she pushes to secure a trade deal amid economic uncertainty.

The chancellor will have her first face-to-face meeting Scott Bessant as she spends three days in Washington DC for the International Monetary Fund (IMF)’s spring meetings.

Her trip comes after the IMF slashed the UK’s economic growth forecast, with a warning that the fallout from Donald Trump’s trade war will hit Britain harder than the rest of Europe.

The downgrade threatens to wipe out the fiscal headroom she had clawed back with benefits cuts in her spring statement – meaning she will likely have to make further cuts or hike taxes when she delivers her second Budget this autumn.