Exclusive: U.K. finance chief sees "meeting of the minds" with Trump administration
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The U.K.'s top finance official tells Axios that there is a "shared agenda" with Trump administration counterparts — one that is strengthening its relationship with the U.S. at a perilous moment for the global economy.
Why it matters: While the U.K.'s Labour government has had setbacks at home, abroad, it has shown how to navigate President Trump at a time of geopolitical and economic uncertainty.
What they're saying: "We have responded to President Trump and his agenda," Rachel Reeves, the U.K. Chancellor of the Exchequer, tells Axios.
- "We recognize the legitimate concerns of the administration," she added, pointing to Trump officials' top friction points, including global trade imbalances. "We want to work with the U.S. on these issues."
Reeves described a "meeting of the minds and a shared agenda" with her counterpart, Treasury Secretary Scott Bessent, with whom she met on Thursday.
- "Both of us recognize there's huge innovation in financial markets at the moment driven by fintech and digital assets," Reeves said. "We want U.K. and U.S. players to be able to operate in both jurisdictions."
- When the U.K. hosted Trump for a state visit last month, Reeves and Bessent announced a task force aimed at better integrating the two nations' capital markets.
The big picture: Reeves spoke to Axios on Friday in the closing hours of the IMF-World Bank annual meetings in Washington, D.C.
- Global finance ministers this week fretted over the new economy largely shaped by Trump and his trade policies over the last nine months.
Between the lines: The president is now focused on imposing tariffs on a number of sectors, raising questions about how those levies will affect countries with previously negotiated trade deals.
- "There's still some things to sort out — pharmaceuticals, steel, etc. — but we're really pleased to get the first trade deal, the best trade deal with the U.S.," Reeves said.
- "We recognize that it's in our country's interest to do deals," Reeves said.
Between the lines: Reeves said that she spoke with Bessent about "how to respond to China's threats to withdraw critical minerals" from global supply chains.
- In response to a question from Axios, Bessent said earlier this week that the U.S. was "already in talks with allies" about potentially hitting back at China's plans for more stringent export controls.
What's next: Reeves said that the U.S. officials "strongly welcome" tougher sanctions aimed at choking off Russia's global oil revenue.
- Trump and Bessent "have said to Europe, including the U.K., that we must do everything in our powers to weaken the Russian economy."
Zoom in: The U.K. unleashed its "strongest sanctions yet on Russia," targeting oil companies Rosneft and Lukoil, according to a statement on Wednesday.
- It came a day before Trump spoke with Russia's Vladimir Putin and announced plans to meet to discuss ending the war in Ukraine.
- The U.K. took aim at companies importing Russian oil in third countries, like India and China that faces similar pressure from the U.S.
- Still, the U.K. government stops short of the U.S. ask that the G7 impose massive, direct tariffs on China and India over their purchases of Russian oil, a plan the Financial Times reported last month.
