- UK Chancellor Rachel Reeves has signalled a willingness to lower tariffs on US car imports to 2.5 per cent from 10 per cent in pursuit of a trade deal with the U.S.
- This potential concession comes amid pressure to secure a deal before U.S. tariffs are implemented and follows reports of the UK possibly also shelving a planned digital services tax.
- Reeves emphasised the importance of a deal being in the UK's national interest and expressed confidence in the relationship between Prime Minister Keir Starmer and President Trump.
- The IMF warned that U.S. tariffs could lead to the UK having the highest inflation in the West and downgraded the UK's growth forecast.
- Reeves is also engaged in discussions with the EU regarding a Brexit reset, with a possible compromise on a youth mobility scheme being considered.
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