British Chancellor of the Exchequer Rachel Reeves has drawn a clear line in transatlantic trade talks, declaring that the UK will not lower regulatory standards to secure a deal with the United States. During a televised interview ahead of meetings with U.S. Treasury Secretary Scott Bessent, Reeves emphasized that British food safety protocols, digital protections, and road standards remain 'non-negotiable' and closely aligned with EU norms.
Reeves specifically highlighted the UK’s 2023 Online Safety Act, which mandates tech companies to shield minors from harmful online content. Despite pushback from U.S. firms, she stated that 'compromise on the Online Safety Act has been ruled out,' reflecting the government’s steadfast commitment to digital safeguards.
Targeted Concessions to Ease Tensions
While resisting regulatory alignment, the UK signaled flexibility on tariffs, proposing to reduce levies on U.S. automotive imports from 10% to 2.5% as a goodwill gesture. Additionally, Reeves introduced a trade policy package in Washington, including a review of Britain’s £135 duty-free import threshold—a measure critics say disadvantages local retailers.
The Trade Remedies Authority will also receive expanded resources to investigate unfair practices like dumping and support SMEs in navigating global markets. These moves come as global trade tensions escalate, driven by protectionist policies and EU-led regulatory crackdowns, such as the €700 million fines on Apple and Meta under the Digital Markets Act.
Balancing Transatlantic Pressures
'We must stand up for free and open trade,' Reeves asserted, outlining efforts to stabilize Britain’s economic outlook amid rising borrowing costs linked to U.S. tariffs. Analysts note the UK’s delicate balancing act: aligning too closely with U.S. demands risks complicating post-Brexit ties with the EU, which continues to refine its own digital and trade regulations.
